Inox raises funds worth ₹250 crore from QIP1 min read . Updated: 13 Nov 2020, 10:42 PM IST
Abu Dhabi Investment Authority, Eastspring Investments, ICICI Prudential, Birla Mutual Fund, Nippon India Mutual Fund, DSP Mutual Fund, Sundaram Mutual Fund, among others, participated in the fund raise
India’s second largest multiplex chain operator, Inox Leisure Ltd, on Friday said it has raised ₹250 crore by selling shares to institutional investors through a qualified institutional placement (QIP). The QIP was subscribed 3.5 times, the company said.
Mint reported on 28 October that Inox Leisure was planning to raise up to ₹250 crore this quarter, after the government allowed theatres to open in mid-October. Inox operates 147 multiplexes and 626 screens in 68 cities.
The global investors that participated in the fundraise include Abu Dhabi Investment Authority and Eastspring Investments. Indian investors in the share sale include ICICI Prudential, Birla Mutual Fund, Nippon India Mutual Fund, DSP Mutual Fund, and Sundaram Mutual Fund.
The issue allocation is approximately 69% and 31% to Indian and foreign investors respectively, the company said. The shares were sold at ₹255 apiece.
The first half of fiscal 2021 was a complete washout for the multiplex industry as theatres remained shut because of the covid-19 pandemic. New movies will be released, increasing footfall, with theatres slowly opening up across the country, analysts said.
Inox will use the proceeds to meet capital expenditure requirements for ongoing and future projects, to sustain growth in the business, for business expansion and to improve the financial leveraging strength of the company. The funds will also be invested in working capital requirements and debt repayment.