Saregama India has approved a strategic investment of Rs 325 crore in filmmaker Sanjay Leela Bhansali’s production company, Bhansali Productions (BPPL), the company announced in an exchange filing.
The RPSG Group-owned company said its board cleared the transaction on December 16, under which Saregama will subscribe to compulsory convertible preference shares (CCPS) in Bhansali Productions and secure exclusive rights to all future film music produced by the studio.
Deal structure and timeline
As part of the first tranche, Saregama will invest Rs 325 crore to subscribe to 9,960 CCPS of Bhansali Productions. These shares will convert into equity at a later date based on a pre-agreed formula, the company said in its regulatory filing.
Following the conversion, Saregama expects to hold between 28% and 49.9% of Bhansali Productions on a fully diluted basis by 2028. The agreement also gives Saregama the option to increase its stake to 51% by 2030, subject to further investment that would be determined on the basis of the mechanism set out in the Transaction Agreements.
The acquisition will be executed in multiple tranches, with the initial CCPS subscription expected to be completed on or before February 14, 2026.
Speaking about the deal, Avarna Jain, Vice Chairperson, Saregama India said, “This partnership underscores Saregama’s strategy of aligning with India’s finest creative minds while delivering long-term value to shareholders.”
The popular director and founder, Bhansali Productions, Sanjay Leela Bhansali added, “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.”
Exclusive music rights and strategic shift
Alongside the equity investment, Saregama has entered into a long-term music rights agreement with Bhansali Productions. Under this arrangement, Bhansali Productions will exclusively sell all future film music to Saregama based on a pre-agreed pricing formula, eliminating the need for competitive bidding for music rights.
Saregama said the structure ensures a steady pipeline of marquee music content while helping it control acquisition costs and strengthen its leadership in music licensing. The company also indicated that it will gradually streamline its own in-house film production activities over the next one to two years, shifting towards partnership-led content creation instead.
Earnings impact and governance
Saregama said the investment is expected to be earnings-per-share accretive by FY27, with margin improvement anticipated across both its music and video segments. Under the partnership framework, Bhansali Productions will retain full creative control, while Saregama will provide governance oversight and financial discipline.
The transaction does not qualify as a related-party deal and does not require any regulatory approvals, the company said.
Bhansali Productions
Founded in 2003, Bhansali Productions has delivered some of Hindi cinema’s most commercially successful and culturally influential films, including Devdas, Bajirao Mastani, Padmaavat and Gangubai Kathiawadi, as well as the Netflix series Heeramandi. The studio has a pipeline of more than 10 feature films planned over the next three years.