At 10:11 am, Tips Industries was trading 12 per cent higher at Rs 355, as compared to 0.35 per cent rise in the S&P BSE Sensex. A combined 217,000 equity shares were changing hands on the counter on the NSE and BSE.
“A meeting of the board of directors of the company is scheduled to be held on Tuesday, January 5, 2021 to explore demerger of the film business and consider any other matters incidental thereto including appointment of intermediaries like independent valuer, merchant banker for fairness opinion, etc,” Tips Industries said in exchange filing.
Tips Industries is engaged in the production and distribution of films and leveraging its audio content library digitally in India and overseas. The Company is also a leading producer of Punjabi films in the country.
The company being a content ownership company, is in constant discussions with telecom/social media players/ OTT for content sharing. Tips Industries on Monday announced a global deal with social media giant Facebook to license its music for videos and other social experiences across Facebook and Instagram.
According to management, there has been an increasing demand for content-rich films, particularly in the last two years. This trend is on the rise. The plans are in place to produce at least two to three films every year that provide wholesome entertainment for the entire family, Tips Industries said in 2019-20 annual report.
The management is confident that its music business will continue to deliver consistent growth and revenue. The music library of the Company are available for streaming and download across leading digital marketplaces like iTunes and Google Play, as well as popular streaming platforms like Saavn and Gaana. The music revenue for FY 2019-20 was Rs 97.92 crore as compared to Rs 66.74 crore in the previous year.