Saregama India to invest ₹325 cr in Bhansali Productions to boost business

Saregama India, a part of RP-Sanjiv Goenka Group, on Tuesday announced that it will invest Rs 325 crore in Sanjay Leela Bhansali’s Bhansali Productions for a subscription of 9,960 compulsory convertible preference shares (CCPS), as per its stock exchange filing. 

This deal is expected to strengthen Saregama India’s video segment and further consolidate its market leadership in the music licensing segment. 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. 

“With this fund infusion, Bhansali Productions will significantly augment its content slate across formats, building a world-class studio while retaining the intellectual property (IP) of all its films going forward. As part of the partnership, Bhansali Productions will exclusively sell all its future film music to Saregama, based on a pre-agreed formula. This structure guarantees Saregama a steady pipeline of premium, marquee film music, eliminating competitive bidding, thereby securing long-term market share in new music and controlling acquisition costs,” the release stated. 

As a result, Saregama India will gradually streamline its in-house film production activities over the next one to two years, focusing instead on such strategic partnerships. The company further said in its release that the investment is expected to be earnings-per-share (EPS) accretive for Saregama by FY27, improving margins across both its music and video segments.

 

“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, in a statement. “Bhansali Productions’ excellence in storytelling and content creation perfectly complements our leadership in music and entertainment.”

 

Bhansali Productions will retain complete creative control of its content, 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, while it generated revenue of Rs 304 crore. Its earnings before interest, taxes, depreciation and amortisation in FY25 was Rs 60 crore, the release said.