Saregama India soared 8.76% to Rs 635, fueled by reports suggesting the company is in talks to acquire a majority stake in Dharma Productions, a prominent film production house owned by Bollywood filmmaker Karan Johar.
The media reports indicated that the deal might not materialize and is still in its early stages. This development comes at a time when the film industry is facing challenges due to box office volatility and rising star fees, making it difficult for production companies to operate independently.
Recent projects from Dharma Productions include “Kill,” “Bad Newz,” “Yodha,” and “Mr & Mrs Mahi.” The upcoming release “Jigra,” starring Alia Bhatt, is set to hit theaters this week. Karan Johar has recently expressed concerns about the “unprecedented” compensation demands from movie stars, revealing in an interview that some actors had asked for Rs 40 crore in fees for “Kill,” which was the entire budget of the film.
In response to the market speculation, Saregama India clarified to the stock exchanges that it regularly evaluates various strategic opportunities for growth and expansion. However, the company stated that there is no material event or information that requires disclosure. Saregama assured that it will make appropriate disclosures as and when necessary.
Saregama India is a RPSG group company owning the largest music archives in India and one of the biggest in the world. The ownership of nearly 50% of all the music ever recorded in India also makes Saregama the most authoritative repository of the countrys musical heritage. Saregama has also expanded into other branches of entertainment – film & series production, live events, and music-based consumer products.
On a consolidated basis, net profit of Saregama India declined 15.09% to Rs 36.92 crore on 25.68% rise in net sales to Rs 205.28 crore in Q1 June 2024 over Q1 June 2023.
