The merger plan was accepted verbally by the tribunal, and a written decision is anticipated within the next 15 to 20 days
13 January, 2023
The Mumbai bench of the National Company Law Tribunal (NCLT) approved the merger of multiplex companies PVR and INOX on 12 January, according to sources following the event
The merger plan was accepted verbally by the tribunal, and a written decision is anticipated within the next 15 to 20 days.
Three PVR shares will be merged for every ten INOX shares, according to the authorised merger ratio.
On 27 March of the previous year, PVR and INOX Leisure announced their intention to merge, creating the biggest multiplex chain in the nation with a network of more than 1,500 screens.
In five years, PVR Chairman Ajay Bijli projects that the combined company will have 3,000–4,000 screens.
The National Company Law Tribunal (NCLT), stock exchanges, the Securities and Exchange Board of India (SEBI), and shareholders all have to approve the merger.
According to the companies, the new theatres that are opened after the merger will be marketed as PVR INOX and the merged company will be known as PVR INOX.
Ajay Bijli and Sanjeev Kumar would be named as the combined entity's managing director and executive director, respectively, according to the two companies' announcement of the merger.
Pavan Kumar Jain, the chairman of the INOX Group, will be named as the non-executive chairman of the board. The combined entity will appoint Siddharth Jain as a Non-Executive Non-Independent Director.
Following the merger, INOX promoters will hold a 16.7 per cent share in the new company, while PVR promoters will hold a 10.6 per cent stake.
Analysts estimate that the combined company will control 50 per cent of the multiplex screens in India. PVR and INOX currently hold a combined box office share of 42 per cent for Hindi and English content.
According to another analyst, the PVR-INOX merger will create a two-player market for multiplexes in India.
Your e-mail information will not be shared with anyone else. And it will be used only to send out our latest news.
BW Communities is an array of business news websites targeted towards niche communities and readers across various industries