Saregama India, a part of the RP-Sanjiv Goenka Group, on Tuesday announced that it will invest Rs 325 crore (Rs 3.25 billion) in Sanjay Leela Bhansali’s Bhansali Productions for a subscription of 9,960 compulsory convertible preference shares (CCPS), its stock exchange filing showed.
The subscription of 9,960 CCPS in Bhansali Productions, known for the Netflix series Heeramandi: The Diamond Bazaar and films such as Devdas and Padmaavat, is expected to be completed by February 14, subject to certain conditions.
Saregama India’s stake after the conversion of CCPS is expected to be at least 28 per cent and could go up to 49.9 per cent on a fully diluted basis by 2028.
The music label further has the option to acquire more stake in multiple tranches in Bhansali Productions, which can go up to 51 per cent by 2030, the filing stated. Kotak Investment Banking acted as the exclusive financial adviser and banker to Bhansali Productions on this transaction.
‘As part of the partnership, Bhansali Productions will exclusively sell all its future film music to Saregama, based on a pre-agreed formula,’ the release stated.
‘This partnership underscores Saregama’s strategy of aligning with India’s finest creative minds while delivering long-term value to shareholders,’ said Avarna Jain, vice chairperson, Saregama India.
Bhansali Productions will retain creative control, and Sanjay Leela Bhansali, founder, Bhansali Productions, said that for him, powerful and meaningful cinema requires time, trust, and a deep respect for the process, which the company was able to align with Saregama India.
‘We share a deep respect for art, music, and storytelling that is both grounded in tradition and resonates with audiences across generations,’ Bhansali added.
The production company has a pipeline of 10 films planned for the next three years. Its immediate slate includes Love and War, directed by Sanjay Leela Bhansali, starring Ranbir Kapoor, Alia Bhatt and Vicky Kaushal, and Do Deewane Shehar Mein, a romantic drama directed by Ravi Udyawar, starring Siddhant Chaturvedi and Mrunal Thakur.
In FY25, Bhansali Productions’ profit after tax stood at Rs 45 crore (Rs 450 million), while it generated revenue of Rs 304 crore (Rs 3.04 billion).
Its earnings before interest, taxes, depreciation and amortisation in FY25 was Rs 60 crore (Rs 600 million), the release said.
Photographs curated by Satish Bodas/Rediff
