After Corona, a big change is being seen in the cinema world in the country. In this episode, today the country’s 2 largest multiplex companies PVR and INOX announced the merger. After the merger, a new company will be formed by merging the two companies, which will be named PVR Inox Limited. The new company will be headed by Anil Bijli, the current chairman of PVR, while Sanjeev Kumar will be appointed as executive director.
Inox Group chairman Pawan Kumar Jain will be made the chairman of the non-executive board of the new company. Inox’s Siddharth Jain will be made a non-executive non-independent director.
Country’s largest company: After the merger of the two companies, the newly formed company PVR INOX Limited will become the largest cinema company in the country. Presently, PVR has 871 screens across 181 locations in 73 cities while INOX has 675 screens in 160 locations across 72 cities in the country. After the merger, the number of screens of both the companies will increase to more than 1500 screens.
Reason behind the merger: During the last 2 years during the Corona era, the cinema world has suffered a lot due to the lockdown. Cinemas remained closed for almost the entire year in 2020. At the same time, even in 2021, the cinema did not open at full capacity. Cinema, on the other hand, was getting tough competition from all OTT players like Netflix, Amazon Prime and G5. In view of this, it is believed that for this reason both the companies have announced the merger.
Changes in shareholding will happen: In the information given by the company to the exchange, it has been told that the promoters of PVR will hold 10.62 per cent in the new company while the promoters of Inox will have 16.66 per cent. Along with this, it was told that the board would be reconstituted again in the new company. The board will consist of 10 members. There will be two seats each on the board for the families of both the promoters. In the new company, shareholders will be given 3 PVR shares in lieu of 10 INOX shares.