Multiplex consolidation: PVR and Inox Leisure likely to merge operations, boards may meet on March 27

In a major development, PVR Limited and Inox Leisure are likely to merge operations, as per Zee Business TV report. Both the companies’ boards are said to meet to discuss the amalgamation plan on Sunday, March 27, 2022, the report noted.

With consolidation of two largest multiplex chains via merger, will form a large company with a market capitalization over Rs 16,000 crore. PVR is said to be a largest theatre chain, followed by Inox Leisure in terms of number screens 860 and 667 respectively.

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On Friday, shares of Inox Leisure gained over 6 per cent to Rs 470 per share with Rs 5,700 crore market cap, while PVR stock closed over 1.5 per cent higher Rs 1804 per share with market cap of over Rs 11,100 crore.

According to multiple reports, PVR Limited was in talks with Cinepolis India for a merger deal and was mulling to strike a Rs 13,600-crore deal. To which, PVR had denied the news terming it a media speculation through an exchange filing.

PVR Ltd expects business to reach pre-pandemic levels in the first quarter of 2022-23 on the back of a slew of new film releases and more people coming back to cinemas, a PTI report said.

The company is witnessing one of its best-ever months in March in terms of occupancy in theatres, riding on the release of new movies like Gangubai Kathiawadi, The Kashmir Files and RRR.

"I think March is going to be one of our best months. It may even surpass our typical good month in pre-pandemic, whatever numbers we used to do before the pandemic, it's going to be better than that," PVR Ltd Joint Managing Director Sanjeev Kumar Bijli told PTI.

The company's consolidated loss after tax narrowed to Rs 10.2 crore in the third quarter ended December 31, 2021, mainly due to the easing of COVID-19 related restrictions. Its total income in the third quarter stood at Rs 709.71 crore against Rs 320.13 crore in the year-ago quarter.