Saregama India has announced a strategic equity deal with Bhansali Productions Private Limited. Saregama will make an initial investment of ₹325 crores and potentially an additional payment in September 2028. The investment is structured through compulsorily convertible preference shares (CCPS) that will convert into equity, resulting in Saregama holding between 28% and 49.9% stake in Bhansali Productions.
Strategic Partnership Details
Saregama India is investing in Bhansali Productions through primary issuance of CCPS, which will convert into equity in October 2028, based on pre-agreed financial performance parameters over the next three years. This could result in Saregama owning between 28% to 49.9% of Bhansali Productions. Saregama also retains the right to increase its stake to 51% after March 2030. This investment will be funded entirely through internal funds.
Future Music Rights
Bhansali Productions will exclusively sell all its future film music to Saregama based on a pre-agreed formula, guaranteeing Saregama a steady pipeline of premium marquee film music and controlling music acquisition costs. Saregama anticipates that around 30% of its Hindi film music content will now come from this deal, potentially increasing to 40%.
Bhansali Productions’ Portfolio
Bhansali Productions’ portfolio includes films such as Hum Dil De Chuke Sanam, Devdas, Ram Leela, Bajirao Mastani, Padmaavat, and Gangubai Kathiawadi. Immediate slate includes movies like Love & War and Do Deewane Sheher Mein. In FY25, Bhansali Productions reported revenue of ₹304 crores, EBITDA of ₹60 crores, and PAT of ₹45 crores.
Financial Impact and Control
Saregama anticipates this investment to be EPS accretive by FY27. Bhansali Productions will retain complete creative control, while Saregama will have complete financial control. Sanjay Leela Bhansali is now creatively locked with Bhansali Productions and will work only for them.
Shift in Strategy
Saregama will gradually exit its own produced films over the next three to five quarters, releasing approximately ₹150-175 crores of working capital. The company aims to reinvest these funds into Bhansali Productions.
Source: BSE
