PVR-Inox Merger Gets Nod From Stock Exchanges, Check It Out !

The NSE and BSE have given their consent for the merger of multiplex companies PVR and INOX Leisure. PVR stated in an exchange filing that the business has received observation letters with “no adverse observations” dated June 20, 2022 from BSE Ltd. and “no objection” dated June 21, 2022 from National Stock Exchange of India Ltd. INOX also reaffirmed this in a similar regulatory filing. To obtain approval from the National Company Law Tribunal and other regulatory bodies for an amalgamation, the exchange must first issue a “no objection” certificate.

The intention of this merger was announced on March 27, to become the biggest multiplex chain in India with over 1,500 screens to cater to prospects in tier III, IV, and V towns. The merged company will be known as PVR INOX Ltd, while the names of the current screens will remain PVR and INOX, respectively. New theatres that have opened since the merger will be known as PVR INOX.

As per the contract, the swap ratio is 3:10 – 10 shares of Inox for 3 shares of PVR. The board will be reorganised after the merger and consist of 10 people. With two seats apiece, both promoter families will be equally represented on the board. Further, INOX promoters will join the current PVR promoters as co-promoters in the amalgamated organisation.

Although the merger of Inox and PVR would be advantageous for both businesses, CCI is yet to give its final clearance. PVR is a bigger company with a broader geographic footprint, which will aid Inox’s expansion. According to analysts, the combined company would increase its bargaining power with movie distributors, real estate developers, ad networks, and ticket aggregators, leading to high revenue and cost efficiencies.