Private Equity

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Music co. Saregama to invest Rs.325-Cr in movie house Bhansali Productions

Economic Times  

Kolkata-headquartered Saregama India is to invest INR 325 crore through compulsorily convertible preference shares (CCPS) in Mumbai-based movie producer Bhansali Productions. Saregama will subscribe to 9,960 CCPS. These shares will convert into equity in 2028, giving Saregama a stake between 28% and 49.9%, with an option to acquire additional shares by 2030 to achieve 51% control.Kotak Investment Banking served as the exclusive financial advisor to Bhansali Productions for this transaction.Founded in 2003 by Sanjay Leela Bhansali, Bhansali Productions has produced films such as *Devdas*, *Bajirao Mastani*, *Padmaavat*, and *Gangubai Kathiawadi*, along with the Netflix series *Heeramandi*.The capital infusion is intended to support a significant expansion of its content slate across various formats, including a pipeline of over 10 feature films planned for the next three years, while retaining ownership of its film intellectual property.The partnership also includes a music rights agreement under which Saregama will acquire the rights to all future music created and produced by Bhansali Productions.For FY25, Bhansali Productions reported revenue of INR 304 crore, EBITDA of INR 60 crore, and a profit after tax of INR 45 crore.