PVR to raise Rs 750 crore through issue of securities to qualified institutional buyers, seeks shareholders' nod
PVR said its board had on 21 December approved issue of equity shares of the company with a face value of Rs 10 each or other securities in one or more tranches QIBs
New Delhi: Multiplex chain operator PVR Friday said it is planning to raise up to Rs 750 crore through issue of securities to qualified institutional buyers, for which it is seeking shareholders' nod.
In a regulatory filing, PVR said its board had on 21 December approved issue of equity shares of the company with a face value of Rs 10 each or other securities in one or more tranches qualified institutional buyers (QIBs) subject to the approval of the shareholders.
"The company intends to issue securities for an aggregate amount not exceeding Rs 750 crore," PVR said in a postal ballot notice to its shareholders.
PVR said the raised sum would be used for "funding our capital expenditure needs, funding any acquisitions, reducing our outstanding debt, funding long and short-term working capital requirements, general corporate purposes and/or other corporate exigencies".
The multiplex operator said voting through e-voting will be held from 31 December to 29 January, 2019, and the results will be announced on 30 January, 2019.
In August this year, PVR had announced acquisition of 71.69 percent stake in South India-based SPI Cinemas for about Rs 633 crore in an all-cash deal.
PVR CMD Ajay Bijli had stated that the acquisition was a significant step in helping it achieve its vision of having 1,000 screens by 2020, up from nearly 750 cinema screens across India.
In 2016, PVR had also acquired 32 screens of DT cinemas from realty major DLF for Rs 433 crore.
The Maharashtra government has asked colleges and multiplexes to “maintain uniformity while broadcasting, playing or singing the national anthem”.
Promoters of Cinemax have signed a pact to sell their entire 69.27 percent stake to PVR for a consideration for Rs 395 crore or Rs 203.65 per share, both the companies informed the stock exchanges.
PVR expansion strategy: To acquire 71.69% stake in South India-based SPI Cinemas in Rs 633 cr all-cash deal
The acquisition of SPI Cinemas will add significant strategic value for PVR and further cement its market leadership position in India,, CMD Bijli said