PVR-INOX merger: Multiplex majors PVR and INOX Leisure join hands | Value Research The PVR-INOX merger is gaining buzz. To give you more insight, here are the terms of the merger and important financial metrics.
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Multiplex majors PVR and INOX Leisure join hands

The PVR-INOX merger is gaining buzz. To give you more insight, here are the terms of the merger and important financial metrics.

Indian multiplex majors, PVR (Priya Village Roadshow) and INOX Leisure have announced that they will be merging their operations to form a new entity under the name "PVR INOX Ltd". At present, PVR has 871 screens and INOX has 675 screens. Post-merger, the company will have 1546 screens across India with Cinepolis and the Mexican movie theater chain being the only competitor with around 400 screens. The management has informed that this move will be an advantage for both PVR and INOX after facing massive headwinds due to the pandemic and drastic penetration of OTT platforms.

PVR has already made several strategic moves to widen its presence and eliminate competition through various acquisitions over the years. In 2013, it acquired 69.3 per cent stake in Cinemax for Rs 395 crore and in 2018, it acquired 71.7 per cent stake in the leading south Indian multiplex operator, SPI Cinemas for Rs 633 crore.

Here are the terms of the merger in simple words for you to understand:

  • Shareholders of INOX Leisure will receive three shares of PVR for every ten shares they hold.
  • Promoters of INOX Leisure will become co-promoters in the new entity. INOX promoters will have 16.66 per cent stake while PVR promoters will have 10.62 per cent stake.
  • The merger does not require any approval from CCI (Competition Commission of India) since the combined revenues of both entities for FY21 was less than Rs 1,000 crore.
  • The board of directors will be reconstituted such that out of the total 10 members, each family will have equal representation.
  • PVR's Chairman and Managing Director Ajay Bijli will be appointed as Managing Director of the merged entity. INOX Leisure's Chairman, Pavan Kumar Jain will be the non-executive chairman of the board.

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