PVR & INOX Officially Merged!

In the latest development, India’s leading multiplexes PVR and INOX are all set to combine operations. The board of members of the two companies met today and approved the merger. The combined entity will be named PVR Inox Limited and new cinema halls which will open post the merger will be branded as PVR Inox.

Tthe two firms in separate exchange filings mentioned that PVR Chairman Ajay Bijli will be the Managing Director of the combined entity and Sanjeev Kumar would be appointed as the Executive Director. Chairman of INOX Group Pavan Kumar Jain will be appointed as the Non-Executive Chairman of the Board. Siddharth Jain will be appointed as Non-Executive Non-Independent Director in the combined entity.

As per the agreement, INOX will merge with PVR in a share swap ratio of 3 shares of PVR for every 10 shares of INOX. The amalgamation is subject to the approval of the shareholders of PVR and INOX. Once the merging happens, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR.

OTT Onslaught:

PVR Promoters will have a 10.62 per cent stake, while Inox promoters will have a 16.66 per cent stake in the combined entity, with a network of more than 1,500 screens. Their joint statement indicates that the onslaught of OTT or streaming platforms had a role to play in the consolidation. “While strongly countering the adversities posed by the advent of various OTT platforms and the after-effects of the pandemic, the combined entity would also work towards taking world-class cinema experience closer to the consumers in tier 2 and 3 markets,” the joint statement states.

After the pandemic, it absolutely ravaged the movie-theatre business, including India’s largest movie chain, PVR Cinemas. This is why it perhaps considered merging its operation with INOX. This is the first mega multiplex consolidation event post COVID, and certainly won’t be the last! Ever since footfalls fell and most movie production stalled during lockdowns, the theatres have been bleeding horribly. PVR, for example, saw revenues spiral down from Rs3,500 crores pre-COVID times.

Recovery has been slow too. Once-in-a-decade type of movies, the big money showdowns like Spiderman, Batman, and Pan-India staples have managed to pull in record foot traffic. But that’s exactly what the pundits were worried about — that people would come out only for top-names, while everything else gets relegated to be streamed from the comforts of the holy couch! So, by joining hands, the PVR-INOX alliance could control over 1,500 screens across India — which means the duo can negotiate better deals with distributors and producers.