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.
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
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,"
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.
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.
Arts posted a revenue of Rs 1 billion for the
fiscal ended 2006-07, releasing four films during
of Mukta Arts rose 7.8 per cent to close Monday
at Rs 111.25 on the BSE.