Subhash Ghai releases public issue

Notching up a first in Bollywood history, Shubash Ghai’s motion picture and film production house will step into the open market over the next two weeks. Slated to open for bookbuilding on July 10, Mukta Arts will enter the capital market with an IPO of approximately Rs 100 crore. The money raised through the public issue is pegged for an ambitious expansion program.

The IPO is for 50,000 equity shares at a face value of Rs 5 each, at a premium. The issue will consist of a bookbuilding portion and a fixed price portion. The company expects the issue price to be between Rs 150 and Rs 200. The bookbuilding portion closes on July 15.

Discussing his grand plans, Ghai sounds as upbeat as ever: "We are expecting a great response from all quarters. With our track record and the hardware backup, there is every reason to be optimistic. The public has faith in Mukta Arts, in our work for the last 21 years, and I have faith in myself. For every vision, success and performance is important and Mukta has proved itself in both quarters."

The money will be used to expand its existing studio facilities by establishing a music recording studio, mixing theatre and editing suites. Other plans include acquiring rights (theatrical, television, satellite, cable, overseas, musical, CD, DVD, internet etc) of movies of production houses and consolidating its library. Production and marketing of TV serials and music albums are also on the anvil.

Also of interest is a plan to establish a film and television institute which will "promote the best talent by training talented youngsters in different areas connected with the entertainment industry." As Ghai’s formidable finds include Madhuri Dixit, Manisha Koirala, Mahima Chaudhari and Jackie Shroff, the training institute will no doubt attract much attention.

It was not long ago that Ajay Devgan had similar plans for his company Devgan Entertainment and Software Production Ltd, but the plan was subsequently dropped. Ghai says that he has no qualms about going public. "We are the first ones in the history of the Indian film industry to go public, but that’s okay. Our insurance for Taal, was also a similar first."