PVR, Inox shares hit fresh 52-week highs on merger news; surge up to 17%

Shares of Inox Leisure and PVR Limited surged up to 17% on Monday to hit upper circuits in Monday's intraday trade after the leading multiplex players announced merger on Sunday. In the process, buoyed by the positive news, the two shares also traded on fresh 52-week highs on Monday. 

Inox Leisure gained 17% to trade at new 52-week high value of Rs 563.60 per share on the BSE, while PVR Limited gained 7% to trade on new 52-week high value of Rs 2010.35 a share on the BSE. 

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At 10 am, shares of Inox and PVR were trading at Rs 543 per share and 1948 a piece respectively on Monday. 

Earlier, The Board of Directors of INOX Leisure Limited (INOX) and the Board of Directors of PVR Limited (PVR), at their respective meetings held today, have approved an all stock amalgamation of INOX with PVR. The amalgamation is subject to approval of the shareholders of INOX and PVR respectively, stock exchanges, SEBI and such other regulatory approvals as may be required. 

Upon obtaining all approvals, when the merger becomes effective, INOX will merge with PVR. Shareholders of INOX will receive shares of PVR in exchange of shares in INOX at the approved share exchange (“swap”) ratio.  

The merger is aimed bringing together two of India’s best cinema brands to deliver an unparalleled consumer experience with a network of more than 1500 screens, said the two companies. 

As per Inox Leisure, Pavan Kumar Jain will be the Non-Executive Chairman of the Board and Ajay Bijli will be appointed as the Managing Director of the merged entity.