PVR, Inox shares rally on boost from Brahmastra’s box office collection
- Shares of PVR and Inox Leisure climbed nearly 5% each on the BSE
Shares of PVR and Inox Leisure climbed nearly 5% each on the BSE in Monday's early trading session on Brahmastra boost as the film has crossed the ₹200-crore mark worldwide in has crossed the ₹150 crore-mark in gross box office collection worldwide in the first two days of its release. The stocks have rebounded today after falling sharply on Friday.
Released on September 9, the first installment of the big-budget fantasy adventure epic Brahmastra starring Ranbir Kapoor, Alia Bhatt, and Amitabh Bachchan had collected ₹75 crore on its opening day. Directed by Ayan Mukerji, the film is reportedly mounted on a massive budget of over ₹400 crore.
“We continue to track the PVR and Inox merger, which would yield a lot of synergy benefits. Multiplexes have come together to celebrate the ‘National Cinema Day’ on 16th September (Friday), offering tickets at just ₹75. For improvement in performance of multiplexes, it is important that audiences redevelop the habit of watching movies in cinemas, instead of OTT platforms. Strong numbers for Brahmastra is a welcome sign for the industry, but key question is - will the producers of Brahmastra make money? It is important for the industry’s long-term health,” said analysts at Edelweiss.
Meanwhile, multiplex operator PVR has called a meeting of its shareholders and creditors on October 11 to seek their approval for the scheme of merger with rival Inox Leisure. This comes after the Mumbai bench of the National Company Law Tribunal (NCLT) on August 22 directed PVR to call a meeting. In June this year, both PVR and Inox Leisure had said they had received clearances for their merger from bourses NSE and BSE.
In March, PVR and Inox Leisure announced the merger to create the largest multiplex chain in the country with a network of more than 1,500 screens to unlock the opportunities in tier III, IV and V cities, besides in the developed markets. The combined entity will be named PVR INOX Ltd with the branding of existing screens to continue as PVR and INOX.
The merger between Inox and PVR is a win-win situation for both companies however this merger needs to get final approval from CCI. PVR is a bigger player and it has diversified geographies that will help Inox to grow further. The combined entity would result in material revenue & cost synergies by improving bargaining power with film distributors, real estate developers, ad-networks and ticket aggregators, as per analysts.
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