Gramaphone Company of India: History

Topics: Stock market, Stock, Corporation Pages: 2 (329 words) Published: February 24, 2014
Background Report
Saregama India Ltd.

Registered office : Head / Corporate office :

33, Jessore Road, Duncan House,
Dum Dum, 31 Netaji Subhas Road,
Kolkata, Kolkata,

Pin - 700028 Pin - 700001
Incorporation year :
1968
Ownership group : RPG Enterprises Group

Main activity : Consumer electronics

Listed on :
Bombay Stock Exchange
Calcutta Stock Exchange
National Stock Exchange

Gramophone Company of India Limited was incorporated in 1968 as a subsidiary of EMI Records Ltd, UK. In 1968 and 1971, the company issued 1.50 lakh shares of Rs 10 each to reduce the English company's stake to 60 per cent. In 1986, the R.P.Goenka group acquired a controlling interest in the company. At this point, Gramophone Company of India had become a Board of Financial Reconstruction (BIFR) case.

The revival plan involved converting Rs 2 crore of debt into equity in 1992-93 and reducing the paid-up capital by 60 per cent. The face value of the company's shares was reduced from Rs 10 to Rs 4 per share, thereby reducing the company's equity capital from Rs 18.17 crore to Rs 7.27 crore. After this, the holding of each shareholder was consolidated by issuing new fully paid-up shares in the ratio of 2 equity shares of Rs 10 each for every 5 fully paid-up equity shares of Rs 4 per share.

In 1996, Gramaphone Company of India set up a wholly-owned subsidiary, Gramco Music Publishing Ltd and also created a new division, Gramco Films Division for the production and marketing of films. In 1997, another wholly-owned subsidiary, RPG Music International Ltd was established to handle export operations.

To keep pace with changing trends, the company launched a new product branded 'Sheer Magic', that involves recording digitally re-mastered music on imported magnetic tapes and plastic components. In 1999, Saregama p.l.c, a wholly-owned subsidiary of RPG Music International, was set up in the UK to manufacture and market ethnic Indian music, music...
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