The National Company Law Tribunal’s (NCLT) Bombay Bench approved the merger of the country’s top two multiplex chains, PVR and INOX Leisure, on Thursday.
According to the merger announcement, the merged entity, to be known as PVR-INOX, will become India’s largest film exhibition company, operating 1,546 screens across 341 properties in 109 cities.
Existing screens will be rebranded as INOX and PVR, respectively. Only new PVR-INOX theatres that open after the merger will be branded as such. PVR’s Joint Managing Director Sanjeev Kumar Bijli stated that the combined entity would have 3,000 to 4,000 screens within five years of the merger.
PVR is expanding into newer cities, particularly in the country’s south and east, where it has a negligible presence, according to Bijli. PVR is looking for smaller cities with “high potential” that are underserved. PVR also has a small presence in Sri Lanka, where it operates nine screens.
PVR’s further overseas expansion has been ruled out by Bijli, who stated that “we are not looking at any other markets” and that the company will focus on domestic expansion, which has good opportunities.
PVR and Inox Leisure announced their merger on March 27, 2022. This has been approved by their respective shareholders, creditors, and the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
The remaining formalities are expected to be completed by the end of this fiscal year. PVR currently operates 884 screens in 77 cities across India and Sri Lanka.
PVR shares closed at Rs 1,754.80 on the BSE, up 2.96 per cent. The company’s market capitalisation is approximately Rs 10,733 crore. Inox shares, on the other hand, closed at Rs 517.60 per share, up 3.06 per cent on the BSE. The market capitalisation of the company was Rs 6,323 crore.
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