PVR-INOX mergerDate: 29 March 2022 Tags: Miscellaneous
PVR Ltd and INOX Leisure Ltd will be merging to form the largest multiplex chain in India.
The boards of both the companies have decided to start the process of amalgamation and exchange shares.
The branding of existing screens to continue as PVR and INOX respectively but the combined entity will be known as PVR INOX Limited.
After the merger, INOX shareholders will get 3 PVR shares for every 10 INOX shares. In the new entity, PVR promoters will have 10.62 per cent stake while INOX promoters will have 16.66 per cent.
The board of directors of the merged company would be re-constituted and size increased to 10 members with equal representation for both the entities.
The new entity will operate 1,546 screens across 341 properties in 109 cities, becoming the largest film exhibition company in India.
The merger will benefit cinema exhibition industry, including customers, content producers, technology service providers, the state governments and the employees.
The booming OTT platforms have prevented viewers from regularly visiting cinema halls. The pandemic had crippled the industry.
It will be widely seen how the combined entity will focus on expanding to consumers in tier-2 and tier-3 markets.