PVR surges over 6 per cent upon news of a possible merger with Cinepolis

If the deal goes through, the merged entity shall own over 1200 screens across the country, almost double than that of the next largest competitor, Inox Leisure Ltd.

PVR Ltd, a movie theatre chain headquartered in Gurgaon, has made it to the BSE’s top gainers list after the stock price surged by over 6 per cent in today’s trading session.  

This surge comes after news broke out yesterday about a possible merger between PVR Ltd and Cinepolis India. As of FY21, PVR owned and operated 846 screens in India, the highest number of screens owned by a single company. On the other hand, Cinepolis India currently operates 360 screens across the country. If the deal goes through, the merged entity shall own over 1200 screens across the country, almost double than that of the next largest competitor, Inox Leisure Ltd.  

As per the information, Cinepolis India will be valued at Rs 4,000-Rs 5,000 crore. Combining this PVR’s market cap of over Rs 9700 crore, the merged entity could be valued at around Rs 13,700 crore.  

While there is no official press release by the company yet, chances are that this news could be announced by the end of this month. 

At the time of market close, the shares of PVR were trading at Rs 1597.50, an increase of 6.56 per cent from the previous day’s closing price of Rs 1499.10 on BSE.