Dharma stake sale: Is Karan Johar-Adar Poonawalla’s Rs 2,000-cr deal too expensive?

A large chunk of the Rs 1,000 crore invested could be through fresh equity; Dharma was earlier in talks with Reliance and Saregama.

Post the decision of Adar Poonawalla’s Serene Productions to pick up a 50 percent stake in Karan Johar’s Dharma Productions, a name in the film production and business, there has been some discussion on the way forward and of course, valuations.

Johar earned his stripes in Bollywood in 1998 through the mega success of the romantic drama Kuch Kuch Hota Hai. That led to more hits at the box office before he turned producer, with a film like Kal Ho Na Ho. The last few years have been difficult with the banner’s films not always working out plus revenue from a stream like satellite, once the business’ cash cow, taking a hit. That has been reflected in the pressure on both revenue and profit.