Shares of PVR, INOX Leisure defy broader market trend; settle with gains

Shares of multiplex chains PVR and INOX Leisure defied the broader market trend and settled in the positive territory on Wednesday after the Competition Commission rejected the complaint against proposed PVR-INOX deal.

The rise in shares came a day after the Competition Commission of India (CCI) rejected a complaint against the proposed merger of PVR and INOX Leisure, saying apprehension of likelihood of anti-competitive practices by an entity cannot be a subject of probe.

Shares of PVR opened on a bullish note at Rs 1,891.10 and hovered in the range of Rs 1,886.75 to Rs 1,974.75 during the trading session on BSE. It finally closed at Rs 1,929.45, up 0.99 per cent over its last close.

On NSE, it opened at Rs 1,905 and settled at Rs 1,927.00, registering a rise of 0.94 per cent over its Tuesday's closing level.

A similar trend was seen on the INOX Leisure counter as well, where the stock opened at Rs 511 and oscillated between Rs 511.00 and Rs 550.40 during the trading session on Wednesday on BSE. The stock finally settled at Rs 542.20, up 5.25 per cent over its last close.

On NSE, INOX Leisure opened at Rs 515.00 and closed at Rs 541.00, up 4.78 per cent over its previous close.

Meanwhile, the broader market closed in the negative territory as concerns over further rate hikes by the US Federal Reserve to tame inflation and weak global cues spooked investor sentiments.

The 30-share index ended the day at 60,346.97 points, down 224.11 points or 0.37 per cent compared to Tuesday's closing level. The broader NSE Nifty closed lower 66.30 points or 0.37 per cent at 18,003.75 points.

The watchdog's order on Tuesday came on a complaint filed against the proposed merger that would create the country's largest multiplex chain with a network of more than 1,500 screens.

On March 27, PVR and INOX Leisure announced the merger. However, the entities were not required to seek CCI approval for the deal as it was below the regulator's threshold levels.

Under the competition law, deals beyond certain thresholds require clearance from the regulator.