Filmmaker and producer Karan Johar announced that Dharma Productions has filed a Draft Red Herring Prospectus with SEBI for a public issue expected to raise Rs 2,500 crore through a combination of a fresh issue of Rs 1,200 crore and an offer for sale of Rs 1,300 crore by existing shareholders. The IPO, which would value Dharma Productions at approximately Rs 8,000 crore, will mark the first time a major Bollywood production house goes public in India, a milestone for the Indian entertainment industry.
Johar said the IPO will give Dharma the capital and institutional discipline to grow from a production house into a full-scale entertainment company with content across film, digital, music, and live events. Dharma Productions catalogue includes blockbusters Kuch Kuch Hota Hai, Kabhi Khushi Kabhie Gham, Student of the Year, Rocky Aur Rani Ki Prem Kahani, and its digital arm Dharmatic Entertainment has 18 OTT originals in production. Investment bankers are bullish on the IPO given the strong brand recognition and consistent box office track record, though analysts cautioned that film production carries inherent revenue unpredictability risk.