This is just a hunch …
- Saregama is raising 750 Crores to fill in the gap that they have in their collection which is basically songs between 1990 to 2010.
- Saregama most likely will go for Hindi covers rather than regional to get the best bang for their bucks
- I Don’t think TSeries, Sony and Zee Music will part with their collections with Saregama
- This would lead us to the most likely candidate for take over which is TIPS
- Tips management is week i don’t think that they have a vision, they are demerging their film business with music sometime this quarter
- TIPS market cap as of today is 1400 Crores, Saregama with 750 crores of funding they can do 50% cash and 50% share swaps and buy out TIPS
Most of Mid cap and Small caps stocks have lost 8 to 20% in last few days, index is down by 5-8% BUT Saregama and TIPS stock is just down by by just 2% from ATH
Do I smell an opportunity 