PVR Limited has soared 8% to Rs 178 after the media company said its board approved plans to raise up to Rs 100 crore for expansion, by issuing equity shares to L Capital Eco at a premium on preferential basis.
“The board has approved to issue of 2.88 million equity shares of face value of Rs 10 each at a premium of Rs 190/- per share of aggregating to Rs 57.70 crore to L Capital Eco, a company incorporated in Mauritius subject to the approval by the members of company,” PVR said in a filing.
In addition to the above, L Capital Eco will invest an amount of approximately Rs 50.09 crore into PVR Leisure Limited, a subsidiary company of PVR Limited, to acquire share capital of PVR Leisure, it added.
The funds raised by PVR through issue of shares on preferential basis shall be used for expansion plan of the company. PVR Leisure Limited will invest in mall entertainment, gaming, food and leisure formats.
The stock opened at Rs 163 and hit a high of Rs 180 on the Bombay Stock Exchange. A combined 360,235 shares have changed hands on the counter so far, against an average 30,000 shares that were traded daily in past two weeks.