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PVR jumps 30.55% in 3 days on acquisition of Cinemax India

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Meanwhile, the Sensex was up 48.46 points or 0.25% at 19,353.78.

On BSE, 2.63 lakh shares were traded in PVR counter as against average daily volume of 98,939 shares in the past one quarter.

The stock hit a high of Rs 341.10 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 322.15 so far during the day. The stock had hit a 52-week low of Rs 115.55 on 19 December 2011.

The stock had outperformed the market over the past one month till 3 December 2012, surging 40.49% compared with the Sensex's 2.93% rise. The scrip had also outperformed the market in past one quarter, jumping 74.89% as against Sensex's 11.05% surge.

The company has equity capital of Rs 28.98 crore. Face value per share is Rs 10.

Shares of PVR have rallied 30.55% in three trading sessions from Rs 255.45 on 29 November 2012, after the company during trading hours on 30 November 2012 said it has entered into definitive agreements to acquire 69.27% stake in Cinemax India, a Kanakia Group entity that operates movie exhibition business in India. The acquisition of is carried out through PVR's wholly owned subsidiary, Cine Hospitality (CHPL). CHPL would be acquiring 69.27% stake owned by the promoter group of Cinemax India at Rs 203.65 per share for an all cash consideration of Rs 395 crore.

PVR on 29 November 2012 also announced a mandatory open offer to the shareholders of Cinemax India for acquisition of up to 72.80 lakh equity at Rs 203.65 per share, representing 26% of the fully diluted voting equity share capital of Cinemax India.

PVR also announced a preferential issue of 1.06 crore equity shares at Rs 245 per share, amounting to Rs 260 crore to promoters, existing investor -- L Capital -- and new private equity investor -- Multiples Alternate Asset Management (Multiples). Under the preferential issue of equity shares in PVR, Multiples will invest an amount of approximately Rs 153 crore, L Capital would invest approximately Rs 82.3 crore and promoters would invest approximately Rs 25 crore into PVR. Post the above dilution, both Multiples Private Equity and L Capital would own approximately 15.8% stake each in the company and promoters will hold 32% stake in PVR, the company said in a statement.

PVR said the acquisition of Cinemax India will create the largest movie exhibition chain in India with a combined strength of 351 screens at 85 locations with a total capacity of 84,190 seats. This will also give PVR a leadership position in 10 key markets across the country. PVR operates multiplexes under the brand name 'PVR' cinemas. It currently has 46 operational properties, with 213 screens and a seating capacity of 50,655 seats. Cinemax has 39 operational properties, with 138 screens and a seating capacity of 33,535 seats.

PVR's consolidated net profit rose 13.3% at Rs 16.09 crore on 36.8% growth in net sales to Rs 189 crore in Q2 September 2012 over Q2 September 2011.

Cinemax India's consolidated net profit jumped 69.45% to Rs 15.81 crore on 21.47% growth in net sales to Rs 110.77 crore in Q2 September 2012 over Q1 June 2012.

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