Big ticket deal: LSG owner Sanjiv Goenka invests Rs 325 crore in Sanjay Leela Bhansali’s production house – Details

Saregama India, a part of RP-Sanjiv Goenka Group (RPSG), a major Indian conglomerate led by Sanjiv Goenka, who also owns IPL team Lucknow Super Giants (LSG), announced that it will invest Rs 325 crore in Sanjay Leela Bhansali promoted Bhansali Productions Private Limited for a subscription of 9,960 compulsory convertible preference shares (CCPS).

According to a stock exchange filing shared earlier on December 16, Saregama India said, Bhansali Productions, as part of the agreement, will exclusively sell all its future film music to Saregama, based on a pre-agreed formula.

“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,” the company stated.

The deal is expected to strengthen Saregama India’s video segment and further consolidate its market leadership in the music licensing segment.

The subscription of 9,960 CCPS in Bhansali Productions, known for the Netflix series Heeramandi: The Diamond Bazaar and films such as Devdas and Padmaavat, is expected to be completed by February 14, subject to certain conditions, the company said in the regulatory filing.

After the conversion of CCPS, Saregama India’s stake is expected to be at least 28 per cent and could go up to 49.9 per cent on a fully diluted basis by 2028.

The music label further has the option to acquire more stake in multiple tranches in Bhansali Productions, which can go up to 51 per cent by 2030, the filing stated.

Kotak Investment Banking acted as the exclusive financial adviser and banker to Bhansali Productions on this transaction.

Saregama India is India’s oldest music label and a leading entertainment company while Bhansali Productions Private Limited is one of India’s most respected film production houses.

“This partnership brings together Bhansali Productions’ globally recognised, distinctive and unmatched cinematic storytelling with Saregama’s leadership position in Music and Live Events, thus building a next-generation media and entertainment house,” Saregama India said.

“Bhansali Productions and Sanjay Leela Bhansali is globally recognised for creating Industry defining films and OTT series that are landmarks from a content and commerce perspective. With this fund infusion, Bhansali Productions will significantly augment its content slate across formats, building a world class studio while retaining the IP of all its films going forward,” it added.

Aligned with its evolving content strategy, Saregama will gradually streamline its in-house film production activities over the next 1–2 years, focusing instead on such strategic partnerships.

The investment is expected to be EPS accretive for Saregama by FY27, improving margins across both its Music and Video segments,the company stated.

About Bhansali Productions

A Studio Built on Vision and Craft founded in 1996 by Sanjay Leela Bhansali, Bhansali Productions is globally recognised for its distinctive cinematic language, uncompromising artistic standards, and enduring commercial success.

The studio has delivered some of Indian cinema’s most iconic and culturally resonant works, including Hum Dil De Chuke Sanam, Devdas, Goliyon Ki Raasleela Ram-leela, Bajirao Mastani, Padmaavat, Gangubai Kathiawadi, Rowdy Rathore, and the Netflix global hit series Heeramandi.

With a robust pipeline of over 10 feature films planned over the next three years, the studio continues to scale its output while preserving its auteur-driven ethos, it said.

Bhansali Productions' immediate slate includes Love and War, directed by Sanjay Leela Bhansali, starring Ranbir Kapoor, Alia Bhatt and Vicky Kaushal; and Do Deewane Shehar Mein, a romantic drama directed by Ravi Udyawar, starring Siddhant Chaturvedi and Mrunal Thakur.

For FY25, Bhansali Productions reported revenue of Rs 304 crore, EBITDA of Rs 60 crore, and PAT of Rs 45 crore, reflecting strong profitability, disciplined execution, and balance-sheet strength.

Under the partnership framework, Bhansali Productions will retain complete creative control, while Saregama will provide governance oversight and financial discipline, creating a structure that aligns artistic excellence with long-term institutional growth.

Avarna Jain, Vice Chairperson, Saregama India Ltd, said, “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.”

Sanjay Leela Bhansali, Founder of Bhansali Productions, 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”.