Music label and entertainment company Saregama India on Tuesday said it will make a ₹325-crore strategic investment in filmmaker Sanjay Leela Bhansali’s Bhansali Productions (BPPL), marking a deep partnership that blends Bhansali’s cinematic storytelling prowess with Saregama’s strength in music and entertainment.
The company will subscribe to 9,960 compulsory convertible preference shares (CCPS) of BPPL by February 14, 2026. Post conversion, Saregama’s stake is expected to range between 28% and 49.9% on a fully diluted basis by 2028, with an option to increase it to 51% by 2030.
What are the terms of agreement?
As part of the arrangement, Bhansali Productions will exclusively sell the music rights of all its future films to Saregama under a pre-agreed pricing formula. This will ensure a steady pipeline of premium film music while eliminating competitive bidding and controlling acquisition costs, the company said.
Saregama will also acquire ownership of all music created and produced by BPPL, strengthening its music licensing portfolio and expanding its presence in the video business. While Bhansali Productions will retain intellectual property and creative control over its films, Saregama will provide governance oversight and financial discipline under the partnership framework.
Saregama’s future production plans
Saregama plans to gradually streamline its in-house film production activities over the next one to two years, shifting towards strategic collaborations. The investment is expected to be earnings-per-share accretive by FY27 and improve margins across its music and video segments.
Founded in 2003, BPPL is known for blockbuster titles such as Hum Dil De Chuke Sanam, Devdas, Ram-Leela, Bajirao Mastani, Padmaavat, Gangubai Kathiawadi and Netflix hit Heeramandi. The studio reported a turnover of Rs 304 crore in FY25, a sharp jump from Rs 5.5 crore in FY24.
Bhansali Productions plans to produce over 10 films in the next three years, including Love and War, directed by Sanjay Leela Bhansali and starring Ranbir Kapoor, Alia Bhatt and Vicky Kaushal, and Do Deewane Shehar Mein, directed by Ravi Udyawar and starring Siddhant Chaturvedi and Mrunal Thakur.
Avarna Jain, vice-chairperson at Saregama India, said the alliance fits into the company’s strategy of partnering with established creative studios to drive long-term shareholder value. Bhansali said the collaboration rests on shared values of artistic integrity, music and storytelling.
Kotak Investment Banking acted as the exclusive financial advisor to Bhansali Productions on the transaction.
Saregama India, part of the RP-Sanjiv Goenka Group, operates across music, digital content, television, artiste management and film production.