Adar Poonawalla-led Serene Productions is picking up a 50 per cent stake in Karan Johar’s Dharma Productions for ₹1,000 crore.

The agreement, which values Dharma at ₹2,000 crore, will result in Johar retaining 50 per cent ownership.

A statement from Dharma said Johar will remain the executive chairman.

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

``We hope to build and grow Dharma and scale even greater heights in the years to come,” Poonawalla said.

The Dharma deal is Poonawalla’s first big investment outside the vaccine sector since 2021 when he acquired a 20 per cent stake in the social media platform Wakau Interactive.

Poonawala has pipped Mukesh Ambani’s Jio Cinema and Sanjiv Goenka’s Saregama to the stake in Dharma.

Reports had suggested Dharma broke off talks with Saregama because of differences over valuation.

“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.

Dharma Productions was founded in 1976 by Karan Johar’s father Yash Johar. It has become a powerhouse in Bollywood under Karan Johar’s leadership, producing over 50 films including blockbusters such as Kabhi Khushi Kabhie Gham, Yeh Jawaani Hai Deewani and 2 States.

The deal could lead to other production house also striking similar deals. They have been feeling the pinch of the surge in OTT viewership and cinema theatres witnessing patchy participation from movie goers.

``This partnership represents a perfect blend of our emotional storytelling prowess and forward-thinking business strategies. It’s about honouring our roots while embracing the future of global entertainment,’’ Johar said.

With inputs from Reuters