India’s oldest music label Saregama has agreed to invest 3.25 billion Indian rupees (approx. USD $36 million) in Bhansali Productions through a multi-stage acquisition that could eventually give it majority control of the Bollywood movie studio.
Saregama’s board approved the deal on Tuesday (December 16). The deal includes subscription to 9,960 compulsory convertible preference shares (CCPS) in Bhansali Productions, with options to increase its stake to 51% by 2030, according to a filing to the Indian stock exchanges obtained by MBW.
The transaction also locks in exclusive music rights from all future Bhansali Productions films through a separate partnership agreement.
According to a separate press release, Bhansali Productions “will exclusively sell all its future film music” to Saregama.
Saregama said: “This structure guarantees Saregama a steady pipeline of premium, marquee film music, eliminating competitive bidding, thereby securing long-term market share in new music and controlling acquisition costs.”
“This structure guarantees Saregama a steady pipeline of premium, marquee film music, eliminating competitive bidding, thereby securing long-term market share in new music and controlling acquisition costs.”
Saregama
The acquisition will be carried out in stages. The initial CCPS subscription is expected to close by February 14, 2026. These shares will convert to equity within 60 days of Bhansali Productions finalizing its audited financial statements for the April-September 2028 period, Saregama said.
This gives Saregama between 28% and 49.9% ownership on a fully diluted basis, de[ending on a formula outlined in the investment agreement.
Saregama then has the option to acquire more shares within 60 days of the fiscal year 2030 audit being finalized to reach a 51% stake.
Indian film director Sanjay Navin Bhansali (professionally known as Sanjay Leela Bhansali) founded Bhansali Productions in 1996. The studio is known for films like Hum Dil De Chuke Sanam (1999) and Devdas (2002). Devdas won India’s National Film Award for Best Popular Film Providing Wholesome Entertainment, and was nominated for the BAFTA Award for Best Film Not in the English Language in the UK.
In fiscal year 2025 ended March 31, the studio recorded revenue of 3.04 billion rupees ($33.7m), a 55-fold increase from the reported revenue of 55.2 million rupees ($611,000) a year prior.
The dramatic surge reflects the release schedule of Bhansali’s projects, including the Netflix series Heeramandi, which premiered on May 1, 2024.
“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.”
Sanjay Leela Bhansali, Bhansali Productions
For Saregama, the company said the deal secures a pipeline of “premium, marquee film music” without the need to compete in open bidding against rivals.
Following the investment, Saregama said it plans to phase out its in-house film production activities over the next one to two years, pivoting instead to strategic partnerships like this one.
Saregama expects the investment to improve earnings per share by fiscal year 2027, with margin gains across both its music and video segments.
In the second quarter of its fiscal year 2026, Saregama reported a 2% YoY drop in consolidated net profit to 438 million rupees ($4.9m), while revenue from operations fell 5% YoY to 449 million rupees ($5m).
Looking ahead, Bhansali Productions has more than 10 feature films planned over the next three years. The immediate slate includes Love and War, starring Ranbir Kapoor, Alia Bhatt and Vicky Kaushal; and Do Deewane Shehar Mein, a romantic drama starring Siddhant Chaturvedi and Mrunal Thakur.
Commenting on the deal, Sanjay Leela Bhansali 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. We share a deep respect for art, music, and story telling that is both grounded in tradition and resonates with audiences across generations.”
Saregama India Vice Chairperson Avarna Jain added: “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.”
Saregama, which traces its history to 1902, operates as part of Indian entertainment IP company RPSG Group. Beyond music, its portfolio includes digital media, TV content and artist management.
“Bhansali Productions’ excellence in storytelling and content creation perfectly complements our leadership in music and entertainment.”
Avarna Jain, Saregama
The Bhansali investment marks its second in the past month. In November, Saregama completed its acquisition of a 100% stake in influencer marketing and talent management company Finnet Media through its subsidiary, Pocket Aces Pictures.
Pocket Aces itself was fully acquired by Saregama last year after the label purchased the remaining 48.2% it didn’t yet own for 2.09 billion rupees ($25m).
Elsewhere this year, Saregama acquired a catalog of Delhi-based music company NAV Records, spanning 6,500 tracks. The acquisition covered thousands of tracks across Haryanvi, Punjabi, Ghazals, Devotional and Indie Pop genres, including YouTube channels like NAV Haryanvi and Nupur Audio, which collectively have over 24 million subscribers.
Saregama struck a partnership with Spotify in 2020, a year after Spotify removed the company’s catalog in India following a copyright infringement suit brought against it by Saregama.
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