OPEN APP
Home >Companies >News >Multiplex operator PVR’s board approves plan to raise 800 crore

Mumbai: The board of the multiplex chain operator PVR Ltd on Friday approved a capital raising plan that could see the company raise up to Rs800 crore, the company said in a stock exchange filing.

The company will look to raise the capital through a so-called qualified institutional placement offering or a preferential allotment, the filing said.

In August, PVR raised Rs300 crore through a rights issue. Last month, its competitor, Inox Leisure Ltd had raised Rs250 crore through a QIP.

The plans to raise capital comes as theatres were allowed to open across the country from October, after having been shut since end of March, when lockdown restrictions were imposed to curtail the spread of the covid-19 pandemic. Currently, theatres are not allowed to function at full capacity.

"...Initial occupancy is very low and other revenue streams such as ad revenue are yet to pick up. Current liquidity of 550 crore will ensure liquidity in near term but quicker recovery in footfalls as well as Average Ticket Price (ATP) depending on pandemic tail will be important," said analysts at ICICI Direct in a note in November.

According to brokerage Nirmal Bang, once India recovers from the pandemic, multiplexes will see a full rebound in footfalls.

"The long-term prospects for the film exhibition industry, where PVR is the leader in terms of screens and brand equity, are intact as Indians have limited out-of-the home entertainment options. The brokerage has retained their Accumulate rating for PVR with an unchanged Target price of Rs1,229 based on 11 times September 2022 estimates", it added.

PVR reported a consolidated net loss of 184 crore in the second quarter of fiscal year 2020-21 as against a net profit of 48 crore in the corresponding period of last year. The consolidated revenue from operations fell significantly to 40.4 crore as against 973 crore in the year ago period.

Shares of PVR rose 2.16% to close at 1,434 on BSE, while the benchmark index, Sensex gained 0.15% to close at 46960.69 points.

PVR currently operates 845 screens in 176 cinemas in 71 cities in India and Sri Lanka with an aggregate seating capacity of approximately 1.82 lakhs seats.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout