According to the block deal data available with the BSE, private equity firm Warburg Pincus, through its affiliate Berry Creek Investment, sold a 2.49 percent stake in PVR Limited for around Rs 380 crores via a block deal.
As per the details available, there was a sale of total of 24,39,301 shares by the affiliate in three tranches and the same were disposed at a trade price of Rs 1,559.35. The buying parties include ICICI Prudential Mutual Fund, SBI Mutual Fund, and Societe Generale – ODI who bought 641,300, 1,469,650, and 328,351 shares respectively at the above mentioned price.
The company’s stock opened its trading session today at Rs 1,566 and currently trades at Rs 1,566.35. The stock is up around 1.3 percent in comparison to the previous closing price of Rs 1,546.05.
PVR Limited (PVR) is India’s largest film exhibition Company. The company pioneered the multiplex revolution in the country with the establishment of the first multiplex cinema in 1997 in New Delhi and continues to lead the market with a relentless focus on innovation and operational excellence to democratize the big‑screen movie experience.
It currently operates a cinema network of 854 screens across 74 cities and 173 cinemas with approximately 1.8 lakh seats. The company made its international debut by opening a nine-screen cinema in Colombo, Srilanka.
Digging into the financials of the company, the revenues and net profits are showing signals which inhibit efficiency in the operations of the company. Revenue figures have shifted from Rs 686.7 crores in Q2 to Rs 940.7 crores in Q3. Moreover, the net profits have shown a movement into the green from net losses of Rs 71.50 crores in Q2 to profits of Rs 15.9 crores in Q3.
Seeing at the profitability ratios of the company, the ROE and ROCE figures have not been promising but have comparatively become less negative in the current financial year. ROE showed negative returns of 45.3 percent in FY20-21 and negative returns of 30.7 percent in FY21-22. Likewise, the ROCE showed negative returns of 14.8 percent in FY20-21 and 6 percent in FY21-22.
As of the quarter ending December 2022, promoters of the company hold 16.94 percent shareholdings. Moreover, FIIs have increased their stakes in the company from 36.33 percent in Q2 to 41.93 percent in Q3.
Written by Amit Madnani
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