PVR-INOX merger gets NCLT nod
PVR-INOX merger – The National Company Law Tribunal’s (NCLT) Mumbai court approved the merger of multiplex operators PVR and INOX on Thursday.
“We would like to let you know that the Mumbai Bench of the NCLT has approved the proposed scheme as of today, January 12, 2023. As soon as the company receives the copy of the detailed ruling, it will be notified to the public exchanges “according to a stock exchange filing by PVR.
The company’s shares ended the day on Thursday 2.7% higher at Rs 1,750 per share.
According to the merger announcement made on March 27, 2022, the combined firm, to be known as PVR-INOX, will operate 1,546 screens across 341 facilities in 109 cities, making it the largest cinema exhibition company in India.
Instead of renovating existing properties after the merger, the combination intends to open 200 new theatres every year under the name PVR-INOX. The installation of the new screens will cost Rs 500 crore in capital expenditures.
According to analysts, the combined company will control 50% of multiplex screens and 16% of the entire market, including single screens. The promoters of INOX and PVR will each own 16.66% of the combined company’s shares, while the founders of PVR will own 10.62%.
The non-executive chairman of the combined company will be Pavan Kumar Jain of INOX, and the MD will be Ajay Bijli, chairman and MD of PVR. Sanjeev Kumar Bijli, his brother, will serve as the combined company’s executive director, and Siddharth Jain, director of INOX Leisure, will serve as a non-executive, non-independent director.
After the proposed merger, the PVR-INOX merger is projected to expand its distribution, food, and beverage, and film production businesses as a method to diversify its revenue.