Winning Bizness Desk

Mumbai. There is going to be a big change in the multiplex industry in India. The merger between India's two largest multiplex chains - PVR Cinemas and Inox Leisure has been approved. Actually, the boards of PVR and Inox company were meeting for a long time to approve this proposal on March 27. After this meeting, the merger was officially announced. Along with this, it has also been decided that Ajay Bijli, CMD of PVR will be the new MD of the company. After this merger, PVR and INOX have now become the largest multiplex chain in the country with 1500 screens.

Both have over 1,500 screens

Share prices of multiplex players PVR and Inox Leisure rose 5 and 16 percent respectively in early trade on March 28, a day after the announcement of their merger deal to create a cinema giant with more than 1,500 screens. INOX Leisure touched a 52-week high of Rs 563.60 and PVR hit a 52-week high of Rs 2,010.35.

Both listed on the stock exchange

Notably, both PVR and Inox companies are listed in the stock market. The share exchange ratio for amalgamation will be three shares of PVR for 10 shares of INOX. Post the merger, INOX Promoters will hold 16.66 per cent stake in the combined entity, while PVR Promoters will hold 10.62 per cent. Post the merger, the promoters of INOX along with the existing promoters of PVR will become co-promoters in the merged entity.

Market cap of over Rs 16,000 crore

According to media reports, the combined merged company will form a large company with a market cap of over Rs 16,000 crore. Inox Leisure's stock had closed over 6% higher at Rs 470 per share on Friday, with a market cap of Rs 5,700 crore. Shares of PVR on Friday closed 1.55% higher at Rs 1804 per share, with a market cap of over Rs 11,100 crore.

The largest film exhibition company

INOX currently operates 675 screens in 160 properties across 72 cities, while PVR operates 871 screens in 181 properties in 73 cities. Together, the two will now become the largest film exhibition company in India operating 1,546 screens across 341 properties in 109 cities.