Share price of Saregama India hit upper circuit of 20% today after the music company inked a global licensing deal with social media giant Facebook. The deal will allow users to choose from a large catalogue of Bollywood music for their Facebook and Instagram posts. Saregama share price opened with a gain of 2.95% at Rs 286.30 against previous close of Rs 278.30 on BSE.

Later, the share hit upper circuit of 20% at Rs 333.95. The stock closed at the same level on BSE. Market cap of the firm rose to Rs 581.94 crore.  The stock has risen 24.14% in last 3 days.

The share trades higher than its 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages. The microcap stock has lost 38.65% in last one year and lost 23.04% since the beginning of this year. Without dicslosing the financial details of the deal, Saregama said Facebook and Instagram users can now add music from Saregama's catalogue of more than 100,000 songs spanning 25 languages to their posts and "stories".

The Kolkata-based company, which sold vinyls and cassettes under household name HMV for decades, is India's oldest music label and released the country's first ever studio-recorded song in 1902.

The deal will "allow people on our platforms, globally, to use their favorite retro Indian music to further enrich their content," said Facebook India's director and head of partnerships, Manish Chopra. Saregama's deal with Facebook follows its licensing deal with Swedish music streaming service Spotify, announced earlier this month.