Saregama to acquire 28% in Bhansali Productions

Kolkata: RPSG Group entertainment company Saregama India is picking up a 28% stake in Sanjay Leela Bhansali-promoted Bhansali Productions Private Limited (BPPL).

The initial deal, as per stock market filings, is valued at Rs 325 crore. However, the RPSG group company will have the right to go up to 51% by March 31, 2030. Saregama will subscribe to 9,960 compulsory convertible preference shares of the Bhansali firm.

"This partnership brings together Bhansali Productions' globally recognized, distinctive and unmatched cinematic storytelling with Saregama's leadership position in music and live events, thus building a next-generation media and entertainment house. Bhansali Productions and Sanjay Leela Bhansali are globally recognized for creating industry-defining films and OTT series that are landmarks from a content and commerce perspective," Saregama added in a filing to stock exchanges.


According to the RPSG firm, with this fund infusion, Bhansali Productions will significantly augment its content slate across formats, building a world-class studio while retaining the 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 film music, eliminating competitive bidding, thereby securing long-term market share in new music and controlling acquisition costs.

Sanjay Leela Bhansali, founder of Bhansali Productions, said: "For me, powerful and meaningful cinema requires time, trust and a deep respect for the process. In Saregama, we have found a partner that understands this philosophy."

Aligned with its evolving content strategy, Saregama will gradually streamline its in-house film production activities over the next 1–2 years, focusing instead on such strategic partnerships. The investment is expected to be EPS accretive for Saregama by FY27, improving margins across both its music and video segments.

Saregama officials said BPPL has a robust pipeline of over 10 feature films planned over the next three years. The studio continues to scale its output while preserving its auteur-driven ethos. For FY25, Bhansali Productions reported a revenue of Rs 304 crore, EBITDA of Rs 60 crore and PAT of Rs 45 crore.

Kotak Investment Banking acted as the exclusive financial adviser and banker to Bhansali Productions on this transaction. Avarna Jain, vice chairperson of Saregama India Ltd, said: "This partnership underscores Saregama's strategy of aligning with India's finest creative minds while delivering long-term value to shareholders. Bhansali Productions' excellence in storytelling and content creation perfectly complements our leadership in music and entertainment."

BPPL is known for content like Hum Dil De Chuke Sanam, Devdas, Goliyon Ki Raasleela Ram Leela, Bajirao Mastani, Padmaavat, Gangubai Kathiawadi, Rowdy Rathore, and the Netflix global hit series Heeramandi.