Saragama India will pick up a 28% stake in Sanjay Leela Bhansali’s company, Bhansali Productions, for Rs. 325 crore. Saregama will have the right to go up to 51% by March 31, 2030.
The music company will subscribe to 9,960 compulsory convertible preference shares in Bhansali Productions on or before February 14, 2026. These preference shares will convert into equity in 2028. Following this, Saregama’s stake in Bhansali Productions will be between 28% and 49.9%, depending on the conversion formula. Following the conversion, Saregama will have the option to acquire additional shares to take its holding to 51% by 2030, giving it majority control of the production house.
Alongside the equity investment, Saregama has entered into a music rights agreement under which it will acquire the rights to all future music created and produced by Bhansali Productions.
For Saregama, the partnership strengthens two areas: it gives a boost to the video segment of its business and further consolidates its leadership in music licensing, with Bhansali Productions providing access to a steady pipeline of premium original music.
Under the stake sale deal, Bhansali Productions will retain complete creative control while Saregama will provide governance oversight and financial discipline. Bhansali Productions will retain ownership of the intellectual property of all its films.