PVR Cinemas-INOX Leisure Merger Deal: There is going to be a big change in the multiplex industry of the country. The merger between India’s two largest multiplex chains – PVR Cinemas and Inox Leisure has been approved. Actually, the boards of PVR and Inox company were meeting for a long time to approve this proposal today i.e. on Sunday 27 March. After this merger, Ajay Bijli, CMD of PVR, will be the new MD of the company.
PVR Limited (Transfer Company) on Sunday said that its Board of Directors has approved the merger plan of Inox Leisure Limited (Transfer Company) with and with the Company. INOX’s board has also approved the merger plan. Let us tell you that after this deal, now a new form of the film exhibition industry can be seen. Post the merger, PVR and Inox Leisure will jointly own over 1,500 screens across India.
Both the companies are listed on the stock exchange
Let us tell you that both PVR and Inox companies are listed in the stock market. The share exchange ratio for the amalgamation will be three shares of PVR for 10 shares of INOX. Post the merger, INOX promoters will hold 16.66 per cent stake in the combined entity, while PVR promoters will hold 10.62 per cent. Post the merger, the promoters of INOX along with the existing promoters of PVR will become co-promoters in the merged entity.
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To become a company with a market cap of more than Rs 16,000 crore
According to media reports, the combined merged company will form a large company with a market cap of over Rs 16,000 crore. Inox Leisure’s stock had closed over 6% higher on Friday at Rs 470 per share, with a market cap of Rs 5,700 crore. Shares of PVR on Friday closed 1.55% higher at Rs 1804 per share, with a market cap of over Rs 11,100 crore.
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will be the largest film exhibition company
INOX currently operates 675 screens in 160 properties in 72 cities, while PVR operates 871 screens in 181 properties in 73 cities. The combined entity will become the largest film exhibition company in India operating 1,546 screens across 341 properties in 109 cities.
…so the decision being taken
According to the report, the merger has been planned to deal with the industry slowdown affected by the Corona epidemic. Let us tell you that both PVR and INOX are big players in the theater business. These companies have suffered huge losses during the Corona period, which will now be compensated. On the other hand, OTT (over-the-top) players like Netflix, Amazon Prime are competing with them, which is posing a threat to the cinema theater industry. This merger also means that the PVR-Cinepolis merger talks may stall.