Warburg Pincus invests ~820 cr for 14% stake in PVR

Global private equity firm Warburg Pincus on Wednesday announced its affiliates have acquired an equity stake of 14 per cent in multiplex chain PVR for about ~820 crore.

The stake is being acquired from affiliates of private equity firm Multiples who will remain a long-term investor with a 14 per cent equity stake and the current promoters, who will continue to drive the business and remain the largest shareholders with a shareholding greater than 20 per cent.

Ajay Bijli, chairman and managing director (MD), PVR, said, “This is a liquidity event to accommodate investment by Warburg Pincus, and both Renuka and I have divested nine and five per cent stake, respectively. The Indian multiplex industry is at a cusp of rapid transformation and at the next level of growth, driven by consumer demand and experience, convenience and technology. We are delighted to welcome Warburg Pincus as an investor as we continue to accelerate our long-term development and expansion. The firm’s global network and experience will be invaluable to us as we go forward.”

He added the Bijli family continues to be the single majority stakeholder and denied any plans to exit the company in the foreseeable future. He also emphasised the current management of the company would continue to perform its duties as it did before the entry of Warburg Pncus.

Vishal Mahadevia, MD and co-head, Warburg Pincus India, commented, “Warburg Pincus is excited to invest in PVR, and has been impressed by Ajay’s passion and continued commitment to the business. The Indian film and entertainment market is expanding rapidly and we look forward to supporting Ajay and the entire management team during the next phase of growth.”