The company is offering around 65 lakh shares, according to the merchant banking source. The company has roped in HSBC, Enam Securities, SMIFS and Triump International as lead managers to the issue. This is the second issue in recent times from a company which is into feature film production.

Padmalaya Telefilms, which is into feature film production besides providing television software, recently tapped the market with an equity offer at a premium of Rs 90. Padmalaya's IPO was oversubscribed by almost 7 times. However, Mukta Arts is banking on the key promoter's name who is a well-known producer director.

Mukta Arts, which is one of the India's leading motion picture company and film production house, has many block busters under its belt. Mukta Arts is into the generation and distribution of contents for the entertainment industry.

The company has a long list of commercially successful Hindi films, most of the films directed by Subhash Ghai. In the last 18 years, the company has produced seven films. The sale of its latest film Taal generated a revenue of Rs 22.55 crore till December 31, 1999. The company has a software library of popular Hindi movies. However, its library has only 12 movies. The company has satellite, DD Metro and LPT rights and other distribution/exhibition rights of movies produced by them.

Mukta Arts is also into hiring out cinematic equipment and owns a modern studio, Audeus. The studio is equipped with Fairlight MFX-3 dubbing suite, which is the first of its kind in India. The company started its equipment hiring activities in 1985. Initially, the company purchased few studio lights, which were given on hire to other producers. Later on, the company acquired various equipment including ARRI II camera, sound proof generator, crane, video assist and steenback editing. The company has recently imported URSA diamond telecine equipment along with other accessories at a total cost of Rs 4.5 crore. Thanks to this imports, the company has an export obligation of around $39.96 lakh.

There are many more media IPOs in the pipeline. Dheeraj Kumar-promoted Creative Eye Ltd's bookbuilding IPO is opening for subscription on June 30. The Om Namah Shivay-fame company is targeting a minimum price of around Rs 300 for its equity offer of 25.02 lakh shares.