Saregama India shares hit the upper circuit of 20 per cent for the second consecutive session on Thursday after the music company signed a global licensing deal with social media giant Facebook. The stock of the company rallied 44 per cent in the last two trading days from Rs 278 on Tuesday.
Extending previous session rally, shares of Saregama India rose as much as 19.99 per cent to hit an intraday high of Rs 400.70 apiece on the BSE after opening higher at Rs 368 against previous close level of Rs 333.95.
In a similar trend, Saregama India shares were locked in upper circuit of 20 per cent at Rs 401.55 on the National Stock Exchange (NSE). The scrip opened at Rs 358.05 against previous closing price of Rs 334.65.
There was also spurt in volume trade as 23,000 shares changed hands over the counter as compared to two-week average volume of 1,784 shares.
Saregama India shares has rallied as much as 116 per cent from its 52-week low of Rs 185 touched on March 31, 2020. Despite rallying over 44 per cent in just two days, the stock was still nearly 45 per cent below its 52-week high of Rs 580 hit on June 6, 2019.
The global licensing deal will allow Saregama to license its music for video and other social experiences across Facebook and its video-sharing app Instagram. "This partnership will allow users to choose from a wide variety of music to add to their social experiences such as videos, stories via music stickers and other creative content. People will also be able to add songs to their Facebook Profile," Saregama India said in the exchange filing.
Formerly known as The Gramophone Company of India Ltd, Saregama owns the largest music archives in India, one of the biggest in the world. The Kolkata-based company, which sold vinyls and cassettes under household name HMV for decades, has a rich catalogue of over 100,000 songs across many different genres including film songs, devotional music, ghazals and indipop in more than 25 languages.
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Saregama has also has expanded into other branches of entertainment - publishing, film production and digital content.
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.