PVR-INOX Merger How Will It Impact? – Free PDF Download

What has happened?

• Multiplex chains PVR Ltd and INOX Leisure Ltd have decided to merge to form the largest entertainment company in the country.
• The boards of both the companies on Sunday approved the amalgamation and the share exchange ratios.
• Accordingly, INOX shareholders will receive three shares in PVR for 10 shares of INOX.
• After the merger, PVR promoters will have 62%,
• While INOX promoters will have 16.66% stake in the combined entity.

What does it entail?

• After the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR.
• Further, the board of directors of the merged company would be re-constituted with a total board strength of 10 members.
• Moreover, both the promoter families will have equal representation with two board seats each.
• With PVR currently operating 871 screens across 181 properties in 73 cities and INOX operating 675 screens across 160 properties in 72 cities, The combined entity will become the largest film exhibition company in India, operating 1,546 screens across 341 properties in 109 cities.

How does it change market dynamics?

• The merger is expected to augur well for the growth of the Indian cinema exhibition industry, besides ensuring tremendous value creation for all stakeholders, Including customers, real estate developers, content producers, technology service providers, the state exchequer and the employees.
• Ajay Bijli would be appointed as the managing director and Sanjeev Kumar would be appointed as the executive director.
• While strongly countering the adversities posed by the advent of various OTT platforms and the after-effects of the pandemic,
• The combined entity would also work towards taking world-class cinema experience closer to the consumers in tier-2 and tier-3 markets, PVR and INOX said.
• INOX had posted a revenue of Rs 296.47 crore and a loss of Rs 1.31 crore for the quarter ended December 2021.
• PVR made a loss of Rs 24.53 crore on a turnover of Rs 546.94 crore for the third quarter.
• Siddharth Jain, Director, INOX Leisure, said,
• “As we head into the industry’s revival amidst headwinds, this decisive partnership would bring in enhanced productivity through scale, a deeper reach in newer markets and numerous cost optimization opportunities, and Continue to delight cinema fans with world-class experiences and landmark innovations.”

conclusion

• “The amalgamation is subject to the approval of the shareholders of PVR and INOX, respectively, stock exchanges, SEBI and such other regulatory approvals as may be required.
• Post the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR,” the filing said.

Q) Which singer has the Guinness World Records for the most single studio recordings?

1. Asha Bhosale
2. Mohammad Rafi
3. Lata Mangeshkar
4. Kishore Kumar

Latest Burning Issues | Free PDF

Sharing is caring!