Leading film screening companies PVR Ltd-Inox Leisure Ltd are merging. The PVR Inox Merger agreement was approved by the boards of directors of the two companies on Sunday. The merger will be completed if the agreement is approved by PVR and Inox shareholders and approved by the Stock Exchange, SEBI and the Competition Commission of India (CCI). Thus, it will emerge as the largest multiplex chain in the country with over 1,500 screens. PVR Promoters will have a 10.62 per cent stake in the newly formed company, while Inox Promoters will have a 16.66 per cent stake. Currently, PVR has 871 screens in 181 locations in 73 cities across the country. Inox has 675 screens in 72 cities.
As far as multiplexes are concerned, PVR-Inox and the cine police together account for more than 50 per cent of box office revenue. Following the merger, the company will continue to dominate the Indian multiplex system. So after the completion of the merger, the joint venture will be renamed PVR Inox Limited. PVR CMD will be Ajay Bijli and the current Inox Group Chairman Sanjeev Kumar will be the Executive Director.
PVR Inox Merger: Win – Win Situation for both companies
If the two companies combine, Inox’s screen advertising revenue is likely to be similar to PVR’s. In terms of convenience fees, Currently Inox is getting very little revenue compared to PVR. The situation after the post-merger company would have the option of raising the convenience fee significantly. Revenue is expected to grow to Rs 150 crore. So basically it’s a win -win situation for both the parties [Inox and PVR]..
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Hi there! I’m Akash. I was born and raised in Bengaluru, India. I am a freelance content writer and a blogger. I am currently a student studying at a prestigious law school in India. I am an avid reader and writer.