Word has surfaced that celebrated filmmaker Karan Johar’s production banner, Dharma Productions, may change ownership hands. Recently a business daily publication reported that one of the country’s leading music labels, Saregama, is eyeing a major stake in the banner. Following this, Saregama had a fiesta in Dalal Street with its shares surging past 9 per cent in its intraday trade. Subsequently, the music label issued a statement.

After the company issued its clarification statement, at 10:47 IST, Saregama shares skyrocketed by 9.05 per cent or Rs 52.85. This surged the value of the company shares to Rs 636.65 per share. For those unaware, on October 7, reports emerged stating that Saregama India, owned by RP Sanjeev Goenka group is considering acquiring a major stake in Karan Johar’s production banner. The anticipated move comes after the music label iterated interest in expanding its film catalogue. However, a report by Mint stated that the deal is yet to reach its final stages and may not even go through. Previously, in September 2023, the company acquired a majority stake in the digital entertainment company Pocket Aces Pictures. At the time, Saregama acquired a 51.8% stake in Pocket Aces for 174 crores. Moreover, they stated that they intend to further their ownership stake in the company.

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The news of the acquisition comes as Dharma Productions faces increasing monetary challenges. These include fluctuating box office numbers and rising entourage fees, an issue the filmmaker has talked about in several instances. Reportedly, Dharma Productions has been seeking external investments for some time to ease the pressure. Meanwhile, as per reports, Dharma Productions declared a revenue of 1,044.16 crores in 2022-23, with a profit of 10.69 crores. On the flip side, Saregama reported 790.3 crores in revenue and a net profit of 185.1 crores.

Also Read: Karan Johar slams exorbitant ticket and F&B prices in theatres

Following the news, Saregama India Ltd issued a statement clarifying its stance on the deal. Saregama issued, “The Company evaluates various strategic opportunities in the ordinary course, for growth and expansion of its business. At this stage, there is no material event/information that requires disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’). The Company will make appropriate disclosures in compliance with applicable laws, as and when required.” Additionally, the company states, “We further submit that the Company has been regularly making disclosures as required under Regulation 30 of the SEBI Listing Regulations from time to time as required.”

In related news, Dharma Productions announced a halt on all pre-release screenings starting from Alia Bhatt’s upcoming film, ‘Jigra.’ In 2024, the banner bankrolled titles including ‘Yodha,’ ‘Mr and Mrs Mahi,’ and ‘Bad Newz.’