PVR is the largest multiplex chain in the country with a total of 860 screens across the country. At the same time, INOX Leisure has a total of 667 screens. Cinepolis has a total of 400 screens.
Two of the country’s largest multiplex chains, PVR and INOX Leisure, have merged
Two of the country’s largest multiplex chains, PVR and INOX Leisure, have merged. The proposal has been approved by the board of directors of both the companies. After the merger, the largest multiplex chain of 1,500 screens will come into existence in the country, regulatory data said.
According to regulatory sources, PVR CMD Ajay Bijli will be appointed as MD of the joint venture and Sanjeev Kumar will take over as executive director. Pawan Kumar Jain, Chairman, Inox Group, will be appointed as the Non-Executive Chairman of the Board. Siddharth Jain will be working as a non-executive non-independent director in the joint venture.
PVR is the largest multiplex chain in the country with a total of 860 screens across the country. At the same time, INOX Leisure has a total of 667 screens. Cinepolis has a total of 400 screens. The company is headquartered in Mexico.
Which company has how much debt?
As on December 31, 2021, the total debt of PVR was Rs 1,536 crore and cash was Rs 678 crore. The company’s earnings have fallen sharply in the 2020 financial year. During this period, PVR’s revenue increased from Rs 3,452 crore to Rs 310 crore. Corona infection has caused huge losses to the company.
The merger of PVR and INOX Leisure will make the company much bigger. Its market cap could be around Rs 16,000 crore. Shares of INOX Leisure rose 6 percent to close at 470 per share on Friday. Its market cap was Rs 5,700 crore. Shares of PVR, on the other hand, rose 1.55 per cent to close at Rs 1,804. Its market cap closed at Rs 11,100 crore.
The theater was closed for several months during the coronavirus infection. So both the companies were hit hard. This is the main reason for the merger of the two companies. Intense competition from the OTT platform has hit the theater business hard. This merger means that the merger of PVR and Cinepolis could be postponed for some time.