Business Line

Thursday, July 20, 2000

Mukta Arts sells music rights to TIPS

NEW DELHI: Yaadein, the latest film under the banner Mukta Arts Ltd promoted by Subhash Ghai, has sold its domestic music rights to TIPS for Rs. 6.5 crores. The international rights for the music is still under negotiations, according to a press release.

The Economic Times

Tuesday Jul 18 2000

Mukta Arts' IPO a hit at box office

SUBHASH Ghai’s banner, Mukta Arts has evoked a strong response in its initial public offering with the institutional portion of the bookbuilding segment being oversubscribed over seven times.

The IPO offer includes a bookbuilt portion comprising an aggregate of Rs 75 crore which closed on Saturday and the fixed price portion of Rs 25 crore which opens on July 28.

Of this, the institutional portion for FIIs and mutual funds was for half the bookbuilt size of Rs 37.5 crore which received response worth Rs 263 crore.

The non-institutional portion which comprised the remaining Rs 37.5 crore has been oversubscribed four times. This is the first public issue by a movie and entertainment production house.

The minimum floor price for the bidding was set at Rs 150 and the fixed price portion will be set at the price discovery resulting from the bidding process.

Mukta Arts is acquiring entertainment software to add to its existing software library of 12 Hindi movies.

The music and exhibition rights of these movies have been leased out for a limited period by the company.

It intends to acquire the rights of movies made by other production houses and consolidate its library. This consolidation exercise is expected to significantly improve the potential of revenue generation from this activity, according to the offer document.

Mukta plans to produce two categories of films, high budget movies directed by Subhash Ghai himself and low budget films which will be directed by other film directors. Mukta is planning to produce two low budget films and TV serials at any point of time.

It is also planning to take up production and marketing of music albums.

After having earned more than Rs 14 crore from overseas markets for tow productions -- Taal and Pardes -- Mukta is setting up a distribution network in key markets like US, UK and West Asia in order to optimize its overseas earnings.

In addition, it is also setting up a web broadcasting channel for software like movies, serials, music albums, live programs and events.’

Subhash Ghai has already announced his next production under the Mukta banner starring Bollywood rage, Hrithik Roshan and Kareena Kapoor.

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