The shares of India’s largest multiplex operator gained 2 percent to Rs 1,805 apiece on the news that Plenty Private Group and Multiples Private Group likely sold a stake in the company through a block deal.
According to the exchange data, Over 2.33 percent equity of the company, or around 22.87 lakh shares worth Rs 401 crore changed hands at Rs 1,753 per share.
On Friday, CNBC TV-18 reported that Plenty PE Fund and Multiples PE Fund Group were likely to offload a 2.33 percent stake in PVR Inox through a block deal.
According to the report, the offer price for the sale was indicated between Rs 1,750 to Rs 1,769.5 per share with the deal valued at Rs 404.5 crore. As of September 2023, Plenty PE Fund held a 1.1 percent stake in the company.
The company’s revenues have increased by 191 percent year on year from Rs 686 crore in Q2FY23 to Rs 1,999 crore in Q2FY24, while net profit has increased from a loss of Rs 71 crore to a profit of Rs 166 crore.
PVR Inox shares have gained 18 percent in the last six months and 23 percent in the last year.
PVR Limited is India’s largest and most premium film exhibition Company. The company established the first multiplex cinema in 1997 in New Delhi.
Currently, the Company operates a cinema network of 1,702 screens across 115 cities with around 1.8 lakh seats.
The company debt is reduced by Rs 327.6 crore from Rs 1,430.9 crore in Q4FY23 to Rs 1,103.3 crore in Q2FY24. The company utilized capital expenditure of Rs 368.3 crore in H1FY24 and the company reported a free cash flow of Rs 308.8 crore.
The company earns about 52% of its revenues from the sale of movie tickets. It also earns revenues from other activities like the sale of food & beverages contributed 30% to its revenues, followed by advertisement income (6%), Convenience fees (6%) & other business (6%).
As of the recent shareholding pattern, the company promoters hold a 27.84 percent stake, while foreign institutional investors hold a 23.26 percent stake and domestic institutional investors hold a 37.19 percent stake in the company.
At the time of writing this report, PVR Inox shares were trading at Rs 1,770.35 per share, up 0.05 percent from the previous close price.
Written by Omkar Chitnis
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