Mumbai: Saregama India Ltd on Monday approved a strategic investment of ₹325 crore in Sanjay Leela Bhansali-promoted Bhansali Productions Pvt Ltd (BPPL), marking a decisive push to deepen its presence in premium film content and secure a steady pipeline of marquee music rights.
The board cleared the subscription of 9,960 compulsory convertible preference shares (CCPS) in BPPL, which will convert into equity over time. Post-conversion, Saregama’s stake is expected to range between 28% and 49.9% on a fully diluted basis, with options to increase ownership to 51% by FY30, subject to agreed pricing mechanisms and conditions.
Alongside the investment, the two companies have entered into a long-term music rights agreement under which Saregama will acquire ownership of all music created and produced by Bhansali Productions.
The structure eliminates competitive bidding for future Bhansali film music and is expected to bolster Saregama’s leadership in music licensing while improving cost efficiencies, the company said.
Founded in 1996, Bhansali Productions is among India’s most profitable film studios, reporting revenue of ₹304 crore in FY25, with EBITDA of ₹60 crore and profit after tax of ₹45 crore.
The studio has a slate of over 10 feature films planned over the next three years, including Love and War and Do Deewane Shehar Mein.
Saregama said the transaction is expected to be EPS accretive by FY27. As part of its evolving content strategy, the company will also gradually streamline in-house film production over the next 1–2 years, pivoting towards partnerships with established creative studios.