INOX And PVR Shares Rise Sharply, Reaching A 52-Week High
INOX and PVR shares rise sharply, reaching a 52-week high.
Shares rose on Monday after major film exhibition companies INOX Leisure and PVR announced a merger deal to create the largest multiplex chain in the country.
Inox Ledger shares rose 19.99 percent to hit a 52-week high of Rs 563.60 on the BSE. At the same time, PVR also rose 9.99 percent to a 52-week high at Rs 2,010.35.
PVR Ltd and Inox Leisure Ltd on Sunday announced a merger deal to create the largest multiplex chain in the country with a network of over 1,500 screens.
The boards of directors of both the companies held meetings on Sunday.
They approved the all-stock amalgamation of INOX with PVR, the two companies said in separate regulatory filings.
This announcement comes at a time when the film exhibition industry is affected by the corona pandemic.
Also, the cinema business is under a lot of pressure due to the rapid growth of digital OTT platforms.
The name of the combined entity of both will be PVR Inox Limited. With this, the existing screens will continue to be branded as PVR and INOX.
The new cinema halls that will open after the merger will be known as PVR INOX.
As per the agreement, the merger of INOX will take place in PVR under a share swap. For every 10 shares of INOX, there will be 3 shares of PVR.
“After the merger, the promoters of INOX along with the existing promoters of PVR will become co-promoters in the merged entity,” the filing said.
It added that PVR promoters will hold 10.62 percent, while INOX promoters will hold 16.66 percent in the combined entity.
PVR expects business growth in Q1 of 2022-23.
On Sunday, PVR Limited’s Joint Managing Director Sanjeev Kumar Bijli had said that now people are returning to theatres. Good business in March. March is going to be one of our best months.
He said that some of the best films are going to release in April, May, and June. So we can get back to our pre-pandemic figures in the next quarter. We fully expect it.
