Calcutta, Nov. 3: T Rowe Price, the Baltimore-based US financial powerhouse that manages $293.7 billion assets globally, has picked up a 7 per cent stake in Saregama, the entertainment arm of RPG Enterprises.

T Rowe picked up the shares through a block deal on the BSE from another foreign institutional investor (FII), Arisaig Partners Asia Pte.

Market sources said T Rowe paid Rs 181 a share to pick up the stake. The Saregama stock ended the day with a smart gain of Rs 17.90 or 9.98 per cent at Rs 197.25.

Saregama vice-chairman Sanjiv Goenka confirmed the development.

“It is a big positive for the company,” Goenka told The Telegraph.

The RPG group holds a 50.77 per cent stake in Saregama, which has the largest repertoire of music rights in the country.

FIIs hold a 17.29 per cent stake, while public holding in the company stands at 16.43 per cent.

Sources said T Rowe officials looked closely at the business model of Saregama and its future plans before making the investment.

CLSA has brokered the deal between TRP and Arisaig.

Investment banking circles said T Rowe was a big global investment management firm and its entry into Saregama raised the quality of foreign investors putting money in the company.

The Saregama management has decided to pursue the strategy of growth to strengthen bottomline.

The company has posted a 70 per cent jump in profit after tax in the last financial year, while income grew only 18 per cent.