Chennai-based GV Films Ltd, a film production, distribution, and webcasting company, is in talks to buy 12% stake in Mumbai-based K Sera Sera Productions Ltd.

The company has also proposed to jointly work with K Sera Sera for producing Hindi feature films and their distribution rights for southern markets.

According to sources in the know, GV Films is likely to pick up little over 10% in K Sera Sera Productions.

A listed company, K Sera Sera has been producing Hindi feature films for the past several years and has produced hit movies such as Sarkar, Ab Tak Chappan, Ek Hasina Thi, Golmaal, and Darna Mane Hai, sources pointed out.

For the fiscal ended March 31, 2007, K Sera Sera has reported a net loss of Rs 23 crore on a total income of Rs 38 crore (Rs 8.9 crore and Rs 53.8 crore, respectively during the previous fiscal).

When contacted, V Subramonian, president, GV Films, while confirming the developments, said, “We have had an initial round of talks with K Sera Sera. We have options to either pick up a stake or to enter into an agreement with them to produce and distribute Hindi feature films jointly. We need to evaluate K Sera Sera. We are not interested in picking up a majority stake. If at all the board decides we will go for anywhere between 10% and 12%.”

GV Films has reported a net profit of Rs 17.60 crore on a turnover of Rs 43 crore as against last year’s net profit of Rs 5.28 crore on a turnover of Rs 18.6 crore, he said.

Meanwhile, the company is in the final stages of acquiring the web casting rights of 8,000 Hollywood movies from a London-based distributor.

The company has bought the internet rights for around Rs 200 crore. “We expect to complete the process in a next few weeks,” Subramonian said.