Mukta Arts surges on pact with ZEEL

Mukta Arts has surged 14% to Rs 43.40 in after noon deals on signing a contract with Zee Entertainment Enterprises for the assignment of satellite and other electronic rights of its 35 films for 5 years in a deal worth of Rs 25 crore.

“The company has entered into a contract with Zee Entertainment Enterprises for the assignment of satellite and other electronic rights of its 35 films for 5 years from the dates on which current satellite rights expire,” Mukta Arts said in a statement.

The deal is for Rs 25 crore plus applicable taxes. The entire deal amount is being paid during the calendar year 2013, it added.

However, the revenue from the deal will be recognised in the profit & loss account, of the company based on the dates on which the rights commence for each film, the company said.

The stock opened at Rs 38.50 and hit a high of Rs 43.75 on the NSE. A combined 151,585 shares have already changed hands on the counter so far against an average less than 10,000 shares that were traded daily in past ten trading days.