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PVR and Inox announce Merger, ready for approval as on 27th March

PVR

PVR, which was founded in 1995, is a movie exhibition company. Through its subsidiaries, the corporation engages in many more activities like content development, film distribution, and an amusement park. The firm was regulated as a joint venture between Priya Exhibitors and Village Roadshow. This Australian-based company operates over 1,000 screens and is one of the country’s biggest exhibition companies. Priya Village Roadshow was made as a result of this 60:40 joint venture (PVR). In India, the firm was the first to explore the notion of multiplexes. In 1997, Village Roadshow opened PVR Anupam in Saket, India’s first multiplex, with the help and regulation of its global experience.

PVR, NY Cinemas probed for not passing on GST perksSince then, PVR has pioneered several industry firsts, including the opening of the country’s largest 11-screen cinema complex in Bangalore in 2004 and the initiation of Gold Class Cinema. Village Roadshow sold the full interests to Priya Exhibitors in November 2002, divesting itself of its holdings, and PVR was taken as the new name. Presently, the corporation has the title of being India’s biggest movie theatre chain. In India, the company’s geographically varied cinema circuit consists of 42 cinemas with 184 screens scattered across 24 cities, serving majorly essential markets all over the country.

INOX

INOX Leisure was founded in 1999 and is part of the Inox Group, which has a market capitalization of $ 2 billion. Gujarat Fluorochemicals owns the company. INOX Leisure is dedicated to presenting high-quality film screenings. 2–5 auditoriums are available in Inox cinemas. These auditoriums boast cutting-edge technology, including international-standard decor, cutting-edge projection and sound systems, and computerized ticket purchasing. It shows films in a variety of languages, including Hindi, English, and other regional languages. 

INOX is going to be a destination for food and we also show movies”: Dinesh  Hariharan, INOX LeisureAll INOX cinemas feature state-of-the-art prediction and sound systems, worldwide interior decoration, stadium-style large back reclining seats with cup holder armrests, high levels of hygiene, a variety range of theatre food, a different classification of Hindi, English, and regional films, ticket booking through a computer, and, most importantly, high-quality services upheld by a young and vibrant team. Inox Leisure has concluded the purchase of a major share in Fame India’s Emerging Equity. With this transaction, Inox is currently the owner of 50.27 per cent of Fame’s issued and paid capital. As a result, Fame becomes a subordinate. In February 2010, Inox bought 1,75,65,288 equity shares in Fame India.

Rang De Basanti, Heyy Baby, Om Shanti Om, Namastey London, Cheeni Kum, Partner, Race, and U Me Aur Hum were one of the films it made out. It has made access to wind turbines in Gujarat to generate power for its use. Pantaloon Group is a partner of the firm. This partnership brings Inox access to real estate development projects that Pantaloon undertakes for its retail network, allowing Inox to tap on untapped possibilities.

PVR and Inox Announce Merger

On March 27, Sunday, the multiplex chain PVR Limited confirmed a merger with INOX Leisure Limited. Ajay Bijli, Chairman and Managing Director of PVR, would be named Managing Director of the amalgamated company. According to a news statement declaring the merger, Pavan Kumar Jain, the present Chairman of the INOX Group, would be the Non-Executive Chairman of the Board. At their separate meetings on March 27, the Boards of Directors of PVR Limited and INOX Leisure Limited authorized an all-stock merger of INOX with PVR.

Breaking! Indias largest multiplex chains PVR and INOX announce merger- NewsThe merger must be approved by the shareholders of PVR and INOX, and also stock exchanges, SEBI, and other regulatory bodies. “INOX will combine with PVR whenever all approvals are obtained, and the transaction becomes operational. “Shareholders of INOX will receive PVR shares in exchange for INOX shares at the authorized share exchange (“swap”) ratio,” according to the announcement. INOX shareholders will get 3 PVR shares in exchange for 10 INOX shares.

PVR Promoters will own 10.62 per cent of the merged business after the merger, while INOX Promoters would own 16.66 per cent. Along with the current sponsors of PVR, the INOX promoters will become co-promoters of the amalgamated organization. Following the scheme’s implementation, the amalgamated company’s Board of Directors will be reformed, with a full board strength of 10 members and equivalent participation on the Board for both promoter’s families, with two board seats each, according to the statement. With 1,546 screens spread over 341 buildings in 109 cities, the merged organization would become India’s largest film exhibition company.

Ajay Bijli would be named Managing Director, while Sanjeev Kumar Bijli, who is now the Joint Managing Director of PVR Ltd, will be named Executive Director. INOX’s Pavan Kumar Jain will be named Non-Executive Chairman of the Board. Siddharth Jain, the existing Director of INOX Leisure Ltd, will be nominated to the amalgamated business as a Non-Executive Non-Independent Director. The combination is projected to uplift the Indian film industry’s growth and create significant important value for all stakeholders, especially customers, property developers, content developers, technology-related service providers, the government, and employees.

Inox Leisure, PVR shares rally up to 18% today. What fuelled this sudden  surge? - The Economic TimesPVR INOX will be the name of the new theatres that will be opened due to the merger. They announced that the merged business would endeavour to bring world-class movie experiences closer to customers in tier-2 and tier-3 markets while combating the challenges posed by the initiation of different OTT platforms and the after-effects of the pandemic. For the quarter ending December 2021, INOX had a revenue of Rs 296.47 crore and a loss of Rs 1.31 crore. PVR lost Rs 24.53 crore in the third quarter on a revenue of Rs 546.94 crore.

As they start into the industry’s restoration during headwinds, said Siddharth Jain, Director, INOX Leisure, this productive join venture would bring in increased efficiency through scale, a well-planned outreach in emerging economies, and innumerable cost optimization possibilities, and continue to enjoy cinema fans with world stuff and landmark innovations.

Edited by Prakriti Arora

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