MUMBAI: Mukta Arts is planning to acquire a majority stake (50.01 per cent) in a newly set up film production company Red Carpet Films Pvt Ltd, which is promoted by Sidhant Cinevision Ltd’s Manish Goswami.

Mukta Arts has entered into a shareholder’s agreement to acquire 25,047 equity shares of Rs 10 each of Red Carpet Films, which comes to 50.01 per cent of the total proposed paid up capital.

While Red Carpet Films is a newly set up company, Goswami’s Sidhant Cinevision has produced television serials in the past, some of which include Kitty Party, Sarrkar and Kittu Sab Janti Hai amongst others.

Speaking to Businessofcinema.com, Mukta Arts CEO Ravi Gupta says, “Mukta has acquired a majority stake in this company, which is being set up primarily to produce mid-budget films.”

Commenting on the type of films that will be made under Red Carpet, Goswami adds, “We are looking at four films each year. The first film will go on floors by January – February, but it is too early to talk about the story or cast. These films will be made on a budget ranging from Rs 6 -12 crores. They will be medium budget films.”

On being queried as to how this alliance would come of assistance to Mukta, Gupta adds, “This acquisition will help Mukta to step up its bandwidth of film production.”

He further adds, “Red Carpet Films is currently a private limited company, but is being converted into a limited company. Red Carpet is in negotiations to pre-sell its productions to distribution companies.”

On the other hand, Goswami said that the company has just been formed and it is too early to comment on the listing.

Incidentally, Mukta Arts’ scrip was on a rally today. The scrip was up 12 per cent but eventually closed at a 7.80 per cent up at Rs 111.25. However, Gupta refused to comment on the market behaviour.

Meanwhile Mukta is readying Nagesh Kukunoor directed Bombay to Bangkok for a December release followed by Black and White in February.