In Monday’s trading session, the shares of a leading exhibitions, conferences, and events industry player surged 9.8 percent on BSE to Rs. 342.8, after the company announced plans to acquire a 76 percent stake in Perfect-Octave Limited for around Rs. 8.53 crores.
With a market cap of Rs. 403.2 crores, at 02:19 p.m., the shares of Exhicon Events Media Solutions Limited were trading in the green at Rs. 315.75, up by nearly 1.2 percent, compared to its previous closing price of Rs. 312.15.
What’s the news:
According to the latest regulatory filings with the BSE, Exhicon Events Media Solutions Limited signed a Memorandum of Understanding (MoU) with Perfect-Octave Limited (POL) for the acquisition of 76 percent of the equity stake of the company.
Subject to the satisfactory completion of all condition precedent, the Share Purchase Agreement (SPA) will be signed within 30 days and the transaction will be closed within 3 months of signing of the SPA.
The cost of acquisition is nearly Rs. 8.53 crores, and the consideration shall be discharged by payment of Rs. 51 lakhs and the issue of nearly 2 lakhs equity shares of Exhicon at Rs. 400 per equity share.
Impact of acquisition:
With this acquisition, Exhicon is poised to enhance its capabilities, and significantly expand its service portfolio, enabling the company to enter the live events and music industry.
The acquisition will facilitate closer collaboration with music maestros and promising talented artists, ensuring more revenues for Exhicon from live performances and brand endorsements.
POL has tie-ups with reputed Music Institutions and maestros to offer certification courses, diplomas and degree courses to aspiring music students in India and abroad. This will open up another robust revenue stream for Exhicon.
The acquisition aligns with Exhicon’s business plans, creating event and music IPs, live concerts, and artist management in India to tap the revenue growth from the sector. POL brings in expertise to facilitate this growth.
About Perfect-Octave Limited:
Incorporated in 2003, POL specialises in producing and managing a wide range of entertainment events, radio and television programs, films, and musical performances, web series for reputed TV channels and OTT platforms.
As of FY24, the company’s audited turnover stood at nearly Rs. 13 crores, as against Rs. 10.12 crores in FY23, and around Rs. 1.6 crores in FY22.
POL offers a comprehensive suite of services in the audio and video sector, addressing diverse industry needs. It holds extensive IPs of non-film music genres, including classical, folk, devotional, and indie music and is poised to add considerable top-line and bottom-line to Exhicon’s consolidated financials.
Financials:
The company has reported a significant growth in the revenue from operations, with a 49.2 percent YoY rise from Rs. 59 crores in FY23 to Rs. 88 crores in FY24. Similarly, the net profit jumped by nearly 55.5 percent YoY from Rs. 9 crores to Rs. 14 crores, during the same period.
Stock Performance:
The shares of Exhicon Events Media Solutions have delivered negative returns of nearly 1.5 percent in one year and around 18.3 percent in the last six months. So far in 2024, the stock has given about 16.8 percent of negative returns.
About the company:
Incorporated in 2010, Exhicon Events Media Solutions Limited is engaged in the business of providing a complete range of products and services for the exhibitions, conferences and events industry, along with providing solutions including media to integrated marketing solutions, temporary to permanent event infrastructure and management to organising.
Written by Shivani Singh
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