Shemaroo Entertainment Limited has informed the Exchange about execution of Share Purchase Agreement
SHEMAROO · price
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Shemaroo Entertainment has signed a Share Purchase Agreement to acquire 100% equity of Aikyam Entertainment Private Limited for a cash consideration of Rs. 14.025 crore. Aikyam is a broadcasting and TV channel distribution company with an estimated FY25 turnover of Rs. 19.23 crore and a net worth of Rs. 11.31 crore. The acquisition is a related party transaction since three directors (including three promoter directors) are common between the two companies. The deal is in line with Shemaroo's strategy to grow its broadcasting business and is expected to close by May 31, 2025, subject to approval from the Ministry of Information and Broadcasting.
This is a small, tuck-in acquisition that expands Shemaroo's broadcasting footprint and is being done entirely in cash. Since it is a related party deal, shareholders should watch the valuation closely, but the purchase price is broadly in line with the target's net worth. The deal size is modest relative to Shemaroo's scale, so near-term impact on the stock is likely to be limited unless synergies or growth plans are disclosed later.