Shares of multiplex operators PVR and INOX Leisure hit their respective higher circuits in early commerce on Monday surging to their 52-week highs after the 2 firms introduced a merger to type the biggest leisure firm within the nation.
The PVR inventory climbed 9.99 per cent to hit a 52-week excessive of Rs 2010.35 apiece on the BSE whereas on the National Stock Exchange (NSE), it rose by the identical margin to Rs 2,003.80 per share. Likewise, the INOX Leisure scrip rallied 19.99 per cent to Rs 563.60 on each BSE and NSE.
PVR and INOX Leisure on Sunday introduced a merger deal to create the biggest multiplex chain within the nation with a community of greater than 1,500 screens. The boards of administrators of the 2 firms at their conferences held on Sunday authorized an all-stock amalgamation of INOX with PVR, the 2 firms mentioned in separate regulatory filings.
The boards of the 2 firms on Sunday authorized the amalgamation and the share change ratios. Accordingly, INOX shareholders will obtain three shares in PVR for 10 shares of INOX. After the merger, PVR promoters may have 10.62 per cent stake whereas INOX promoters may have 16.66 per cent stake within the mixed entity.
Post merger, the promoters of INOX will develop into co-promoters within the merged entity together with the prevailing promoters of PVR.
The mixed entity shall be named PVR INOX Ltd with the branding of present screens to proceed as PVR and INOX respectively. New cinemas opened put up the merger shall be branded as PVR INOX, it added.
Ajay Bijli could be appointed the managing director and Sanjeev Kumar the manager director. Pavan Kumar Jain could be named the non-executive chairman of the Board. Siddharth Jain could be appointed as non-executive non-independent director within the mixed entity.
The merger is more likely to augur effectively for the expansion of the Indian cinema exhibition trade, apart from guaranteeing large worth creation for all stakeholders, together with prospects, actual property builders, content material producers, know-how service suppliers, the state exchequer and the staff.
