Movie theatre Chain PVR and Inox announced a merger on Sunday. Both the multiplex giant has decided to merge and form PVR Inox Ltd. This merger will be one of the biggest businesses of the year, and this merger will also allow the best cinema brands to offer unparalleled consumer experience on 1,500 screens.
Investors will be able to buy PVR shares in a 3:10 swap ratio, meaning three equity shares of PVR will be exchanged for ten equity shares of Inox in the new company. Inox will hold 16.66 percent of the new company, while PVR will hold 10.62 percent.
Upon completion of the merger, the combined entity will operate 1,546 screens in 341 properties in 109 cities, making it India’s largest film exhibition company. Days after theatres across the country reopened after months of closure due to the Covid-19 pandemic, the merger comes when most are reopened after being closed for months. Mr. Ajay Bijli, PVR chairman and managing director, said that the partnership of these two famous multiplex chains would give importance to the consumers’ needs and the quality of the content we deliver at the theatre.