PVR, Inox Leisure shares hit new 52-week high on theatres opening news, stocks zoom up to 18%

As state governments such as Maharashtra and Karnataka allow theatres to open, the shares of multiplex operators PVR and Inox Leisure zoomed up to 18 per cent on Monday and touched their new 52-week highs to Rs 1662.2 and Rs 412.2 per share, respectively on the BSE intraday trade.

Individually, Inox Leisure shares jumped near 18 per cent to Rs 412.20 per share, crossing its earlier 52-week high of Rs 384.10 apiece, it hit on September 22, 2021. While PVR shares surged 10 per cent to Rs 1,662 per share, breaching their previous high of 1,631.85 per share hit on September 22, 2021.

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At around 11:19 am, Inox Leisure is surging over 8 per cent to Rs 379 per share and PVR is gaining over 5 per cent to Rs 1590 per share on the BSE, as against 0.08 per cent fall in the S&P BSE Sensex.

Maharashtra government earlier on weekend approved the opening of cinema halls and auditoriums in the state from October 22, 2021, a Standard Operating Procedure (SOP) for entry will be issued soon regarding the same.

Moreover, cinema halls and auditoriums in Karnataka will also be allowed to operate at full capacity from October 1, while adhering to COVID norms. The guidelines mandate a minimum of one dose of vaccine along with other social distancing norms.

The state of Maharashtra is the largest markets for cinema theatres with a contribution of around 25 per cent of the Hindi box office revenue. It is the only large state in the country, not yet allowed the cinema halls to reopen since the second wave of Covid-19 restrictions imposed.

Both the theatre stocks have been surging amid the unlock theme and travel being opened almost across the country. In the last five trading sessions, the shares of Inox Leisure and PVR has gained around 31 and 17 per cent, respectively on the BSE.