Two iconic brands that moviegoers across India are amply familiar with —PVR Ltd and INOX Leisure Ltd— announced a merger, subject to approval by shareholders, Sunday, March 27, 2022. The combined entity will be named PVR INOX Limited with the branding of existing screens to continue as INOX and PVR respectively.
With INOX operating 675 screens across 160 properties in 72 cities and PVR currently operating 871 screens across 181 properties in 73 cities and, the combined entity PVR INOX Limited will become the largest film exhibition company in India operating 1546 screens across 341 properties across 109 cities.
Ajay Bijli, Chairman & MD, PVR described the development as “momentous”, adding, it brings together two companies with significantly complementary strengths.
PVR-INOX merger details
Post the merger, INOX promoters will have a 16.66% stake while PVR promoters will have a 10.62% stake in the combined entity. Once the merger becomes effective after due approvals, INOX will merge with PVR. INOX shareholders will receive 3 shares of PVR for 10 shares of INOX.
Post the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR. The Board of Directors of the merged company would be re-constituted with total board strength of 10 members and both the promoter families having equal representation on the Board with 2 board seats each, said INOX Leisure Ltd in a statement.
Pavan Kumar Jain would be appointed as the Non- Executive Chairman of the Board. Ajay Bijli would be appointed as the Managing Director and Sanjeev Kumar would be appointed as the Executive Director. Siddharth Jain would be appointed as Non-Executive Non-Independent Director in the combined entity.
New cinemas opened post the merger will be branded as PVR INOX.
Siddharth Jain, Director – INOX Leisure Ltd said, “Coming together of two iconic cinema brands, which are driven by passion, is certainly the most historic moment in the Indian cinema exhibition industry”.
“As we head into the industry’s revival amidst headwinds, this decisive partnership would bring in enhanced productivity through scale, a deeper reach in newer markets and numerous cost optimization opportunities, and continue to delight cinema fans with world-class experiences and landmark innovations.”
