PVR and INOX Leisure tie the knot for a blockbuster journey!

INOX promoters will have a 16.66 per cent stake while PVR promoters will have a 10.62 per cent stake in the combined entity

The boards of directors of INOX Leisure Limited (INOX) as well as of PVR Limited (PVR), at their respective meetings held, have approved an all-stock amalgamation of INOX with PVR.  

The amalgamation is subject to the approval of the shareholders of INOX and PVR respectively, along with stock exchanges, SEBI, and other such regulatory approvals as may be required.  

Upon obtaining all approvals, when the merger becomes effective, INOX will merge with PVR. The shareholders of INOX will receive shares of PVR in exchange for the shares in INOX at the approved share exchange (swap) ratio.   

INOX shareholders will receive three shares of PVR for 10 shares of INOX. Post the merger, INOX promoters will have a 16.66 per cent stake while PVR promoters will have a 10.62 per cent stake in the combined entity.   

Post the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR. Upon effectiveness of the scheme, the board of directors of the merged company would be re-constituted with the total board strength of 10 members with both the promoter families having equal representation on the board with two seats each.  

On Friday, both the stocks closed off their day’s high with PVR gaining more than 2.5 per cent while INOX soaring over 6 per cent.   

On a YTD basis, PVR has zoomed nearly 40 per cent while INOX surged about 33 per cent.