They demerged both the business as the film division was diluting returns and margins of the company. The film division will need continuous infusion of capital to grow. Film business is something very dear to the promoters. So it makes sense for them to reduce their stake to provide the films business with the necessary capital. That/s something that wont affect the shareholders of Tips Industries. And being in the film business will compliment their music business when it comes to acquiring new music.
Inorganic acquisitions at fair price is going to be really difficult as even the smaller players would have realised the value of catalogues. By now they would have understand how easy it is to monetise the content. Saregama is also been looking for acquisitions for some time unsuccessfully. Going forward,as @Abhay_Srivastava has said its going to be alpha of the the music picking thats going to make the difference. Right music at the right price.
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