The shares of the leading film production houses gained up to 18 percent after the company entered into an assignment agreement for satellite and media rights.
Mukta Arts Ltd has a market capitalization of Rs 208.80 crore, the shares were trading at Rs 92.45 per share, increasing around 15 percent as compared to the previous closing of Rs 80.91 per share.
Reason for rise:-
Today, the company’s shares have seen significant movement after Mukta Arts Ltd entered into an assignment agreement, and a Term Sheet was executed with Zee Entertainment Enterprises Limited (“Zee”) for the Assignment of Satellite and Media Rights of 37 Films of the company for a limited period of 6 years beginning August 25th, 2027, for a total consideration of 25% more than the previous agreement.
Financial Condition:-
Looking forward to the company’s financial performance, revenue dipped by 4 percent from Rs 40.43 crore in Q1FY24 to Rs 38.77 crore in Q1FY25, but during the same period, net loss magnified from Rs 3.80 crore to Rs 6.78 crore.
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Expansion plans & recent partnerships:-
The company plans to significantly increase its cinema footprint by adding 50 to 60 new screens over the next 18 months, with an investment of up to ₹70 crore. The goal is to surpass 100 total screens, enhancing its distribution and exhibition capabilities across India.
Mukta Arts has entered into a partnership with Zee Entertainment for the production and distribution of 37 films, which is expected to bolster its content generation capabilities and enhance revenue streams from film distribution.
International presence:-
Mukta Arts’ international subsidiary has signed an agreement with Al-Othaim Investment Co. to operate cinemas in Saudi Arabia. This move marks a significant step in Mukta Arts’ strategy to expand its presence in international markets
According to the most recent shareholding pattern, the Promoters control 70.71 percent of the shares, while Foreign Institutional Investors own 0 percent. Retail investors hold the remaining 29.28 percent of the shares.
Company snapshot:-
Mukta Arts Limited is an India-based company, which is primarily engaged in the business of film production, distribution, and exhibition. The Company provides film content to multiplexes
and single screens across India and also manages/runs theatres. It also provides production facilities to other production houses and independent producers.
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Written by:- Abhishek Singh
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