PVR looks to raise up to $100 mil­lion through QIP

Mint ST - - DEALS - Swaraj Singh Dhan­jal [email protected] MUM­BAI

PVR ap­points Ko­tak Mahin­dra Cap­i­tal and CLSA to man­age the fundrais­ing process

PVR Ltd has held con­ver­sa­tions with var­i­ous in­vestors in re­cent weeks as In­dia’s largest mul­ti­plex op­er­a­tor looks to raise around $100 mil­lion through a qual­i­fied in­sti­tu­tional place­ment (QIP) of­fer­ing, said two peo­ple aware of the devel­op­ment.

“PVR has ap­pointed in­vest­ment banks Ko­tak Mahin­dra Cap­i­tal and CLSA to man­age the fundrais­ing process. They have held do­mes­tic road shows to meet in­vestors and they are likely to launch the of­fer­ing soon, if mar­ket con­di­tions are sup­port­ive for a trade. The com­pany plans to use the funds for var­i­ous pur­poses, in­clud­ing pur­suit of inor­ganic growth,” said the first per­son cited above, re­quest­ing anonymity.

On 21 De­cem­ber, PVR’S board had ap­proved rais­ing up to ₹750 crore through an is­suance of eq­uity shares via mul­ti­ple routes, in­clud­ing a QIP.

QIP is a cap­i­tal-rais­ing tool through which listed com­pa­nies can sell shares, fully and partly con­vert­ible deben­tures, or any se­cu­ri­ties other than war­rants that are con­vert­ible into stocks, to a qual­i­fied in­sti­tu­tional buyer.

The res­o­lu­tion has re­ceived ap­proval from its share­hold­ers, the com­pany in­formed stock ex­changes on 30 Jan­uary. Stock ex­change fil­ings by PVR show that it held meet­ing with var­i­ous in­sti­tu­tional in­vestors on 5 and 6 Fe­bru­ary, while to­wards the end of Jan­uary, it met in­vestors in Sin­ga­pore and Hong Kong.

PVR and CLSA de­clined to com­ment on the devel­op­ment. An email sent to Ko­tak Mahin­dra Cap­i­tal did not elicit any re­sponse till press time.

PVR op­er­ates 748 screens across 161 lo­ca­tions in 64 cities as on 23 Jan­uary, ac­cord­ing to its lat­est in­vestor pre­sen­ta­tion. It claims to have a 32% mar­ket share of Hol­ly­wood box of­fice and 22% share of Bol­ly­wood box of­fice in the year ended 31 March.

For the nine months ended 31 De­cem­ber, PVR re­ported rev­enue of ₹2,272.5 crore, a jump of 28% over the rev­enue recorded in the same pe­riod last year. Be­tween April and De­cem­ber 2018, it re­ported profit of ₹141.62 crore, up 44% from the cor­re­spond­ing pe­riod of the last fi­nan­cial year.

PVR has fo­cused on inor­ganic growth and has grown to its cur­rent lead­er­ship po­si­tion on the back of sev­eral strate­gic ac­qui­si­tions.

Last year, it had ac­quired a ma­jor­ity stake in South In­dia-based mul­ti­plex chain SPI Cine­mas, which op­er­ated 76 screens across 17 prop­er­ties in 10 cities un­der brands such as Sathyam, Es­cape, The Cin­ema and S2 Cin­ema, for ₹633 crore in an all-cash deal.

Last Au­gust, The Eco­nomic Times re­ported that the com­pany is also in talks to ac­quire North In­dia’s Wave Cine­mas, which could fetch a price tag of ₹450 crore.

In 2016, it ac­quired 32 screens from real es­tate de­vel­oper DLF, which op­er­ated un­der the DT Cine­mas, for around ₹433 crore. In 2012, it ac­quired Mum­bai-based Cine­max Ltd for ₹395 crore.


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