10 Billion Rs: Karan Johar Sells 50% Of Dharma Productions To Poonawalla

Photo: Reuters/Arnd Wiegmann

MUMBAI, (REUTERS) – Adar Poonawalla, CEO of vaccine maker Serum Institute of India, will buy a 50% stake in filmmaker Karan Johar’s Dharma Productions for 10 billion rupees ($119 million), the Bollywood studio said on October 21.

The deal values Johar’s Dharma, which produced celebrity talk show “Koffee with Karan” and Bollywood films such as “Kabhi Khushi Kabhie Gham” and “My Name Is Khan”, at 20 billion rupees.

Poonawalla will buy the stake through his production company, Serene Productions. This is his first major investment outside the pharma sector since 2021, when he bought a 20% stake in social media platform Wakau Interactive.

“They (Adar and Serum) are trying to fruitfully deploy the large cash pile that the company would have generated from the vaccine sales,” said Vishal Manchanda, research analyst at Systematix Institutional Equities, adding that the investment was “completely unexpected”.

Serum Institute of India has benefitted from sales of its “Covishield” branded vaccines during the COVID-19 pandemic, and since then, has also invested in other vaccines for malaria, dengue and cervical cancer.

“The collaboration aims to further transform content creation, distribution, and audience engagement by integrating advanced technologies and pioneering production methods,” the statement said.

Bollywood film production houses have struggled to bring back the money invested in new films as a ho-hum movie lineup and rising demand for streaming services kept movie-watchers at home. Even well known stars are turning to South Indian cinema to make some noise at the box office.