MUMBAI: Subhash Ghai-promoted Mukta Arts has agreed to buy 50.01 per cent stake in Manish Goswami's newly started movie company at par value.

The purchase price of Red Carpet Films, which is yet to produce any movies, is pegged at Rs 2,50,470. "We plan to increase the bandwidth of our production capability. Although Red Carpet Films has not produced any movie so far, it is in advanced discussions with distributors globally for output deals," says Mukta Arts CEO Ravi Gupta.

Red Carpet Films plans to produce 3-4 movies a year. "We are looking at producing medium budget films in the range of Rs 60-120 million. We will soon be announcing an output deal with a corporate to produce films for them," says Goswami.

Mukta Arts has entered into a shareholder's agreement to acquire 25047 shares (of Rs 10 each) of Red Carpet Films, the company says in a release.

Goswami also runs a TV content company, Siddhant Cinevision, which is not part of the deal. Siddhant Cinevision has made successful serials like Parampara, Kittie Party and Ashirwaad.

Mukta Arts posted a revenue of Rs 1 billion for the fiscal ended 2006-07, releasing four films during the year.

Shares of Mukta Arts rose 7.8 per cent to close Monday at Rs 111.25 on the BSE.