Grab your popcorn and fasten your belts. India’s biggest multiplex chain PVR, is merging with INOX Leisure – the second biggest in its league. The combined entity, PVR INOX Limited, will operate 1,546 screens – almost half the share of multiplex screens in India! The new screens that will open will come under the new name while operations of existing multiplexes will continue under the old names.
What did the deal look like and who guzzled whom? You guessed it right – PVR was the big shark here. The share swap ratio will be 3:10 (3 shares of PVR for 10 shares of INOX). INOX is all set to roll with its stock trading at ₹470, while PVR stock is currently trading at ₹1800. Hence the former is likely to benefit from the merger. Hopefully, this will offer INOX some respite from the wrath of the pandemic on the sector.
Who’s who? After joining hands, Ajay Bijli would take over as managing director (MD) of the new entity and Sanjeev Kumar would become executive director. PVR promoters get 10.62% stakes in the combined entity, whereas INOX promoters will bag 16.66%.
Surprise surprise! It was expected that PVR will merge with Cinepolis, one of its closest (and now distant) competitors. At 417 screens, Cinepolis is far from giving the new entity a run at least for now.
Too long? Here’s a one-liner: Lights, camera, merger! PVR merges with INOX Leisure to form the largest film exhibition company under PVR INOX Ltd, Ajay Bijli will be MD of entity.