Exhicon acquires 76% stake in Perfect Octave to strengthen live events and music portfolio

In a move that further solidifies its position in the live events and entertainment industry, Exhicon Events Media Solutions Limited has announced the acquisition of a 76% stake in Perfect Octave Limited. This acquisition marks the eighth consecutive strategic purchase by Exhicon since its listing, reflecting the company’s ongoing efforts to dominate the exhibitions, conferences, and events sector.

Acquisition Overview and Strategic Implications

Exhicon has committed INR 8.52 crores for this acquisition, structured through a combination of cash and equity shares. The company will make a cash payment of INR 51 lakhs and issue 2,00,459 equity shares at a value of INR 400 per share. This deal, finalized with a Memorandum of Understanding on August 26, 2024, is expected to be completed within three months, subject to regulatory approvals.

Perfect Octave Limited, known for its specialization in the production of non-film music and corporate videos, reported a revenue of INR 12.99 crores for FY 2024, with a net profit of INR 1.25 crores. The acquisition is projected to contribute significantly to Exhicon’s top-line and bottom-line growth, with Perfect Octave’s impressive portfolio of over 1,200 high-definition music IP tracks and its extensive experience in managing entertainment events, radio programs, and web series for major TV channels and OTT platforms.

This strategic acquisition aligns with Exhicon’s vision of expanding its footprint in the high-growth live events and music concert sector. The integration of Perfect Octave’s assets and expertise is expected to open new revenue streams for Exhicon, particularly through collaborations with renowned and emerging artists, as well as expanding into music education and corporate video production.

Market Response and Leadership Commentary

The market has responded positively to the announcement, with Exhicon’s shares trading at a 6.04% increase following the news. This surge reflects investor confidence in the synergies expected from the merger of Exhicon’s extensive industry experience with Perfect Octave’s creative and production capabilities.

M Q Syed, Chairman and Managing Director of Exhicon Events Media Solutions, remarked on the acquisition, stating, “This acquisition is a significant step in our growth strategy. It not only strengthens our service portfolio but also positions us to capitalize on the burgeoning content economy. The collaboration with Perfect Octave is set to unlock immense value for our stakeholders.”

Dr. Ratish Tagde, Promoter of Perfect Octave, echoed this sentiment, noting that the partnership marks a new chapter of growth for the company and the artists they work with. “By joining forces with Exhicon, we are poised to create powerful synergies that will enable us to tap into the huge business potential of live performance event IPs,” he stated.

Strategic Expansion and Future Outlook

This acquisition is part of Exhicon’s broader strategy to dominate the events and entertainment industry. With the addition of Perfect Octave’s extensive IP library and expertise, Exhicon is well-positioned to leverage the growing demand for live entertainment and music in India, especially in the post-pandemic era.

Looking ahead, Exhicon expects to see a 40% growth in Perfect Octave’s revenue in FY 2025, with an anticipated increase in profit margins to 15%. This growth will be driven by the combined strengths of the two companies, enabling them to offer a comprehensive suite of services in the live events and corporate video sectors.

Exhicon’s acquisition of Perfect Octave Limited is a strategic move that not only enhances its service offerings but also strengthens its position as a leader in the entertainment industry. As the company continues to expand its portfolio, stakeholders can anticipate further growth and innovation in the years to come.