Cinemax India gains 20.93% in 2 days on securing board nod for amalgamation with PVR

Shares of PVR fell 1.36% to Rs 322.

Meanwhile, the S&P BSE Sensex was down 250.87 points or 1.29% at 19,190.20.

On BSE, 269 shares of Cinemax India changed hands with pending buy orders of 2,350 shares at maximum limit. The stock has an average daily volume of 1,021 shares in past one quarter.

The stock hit a high and low of Rs 137.80 so far during the day. The stock had hit a record high of Rs 202.65 on 8 January 2013. The stock had hit a record low of Rs 55.05 on 18 October 2012.

The stock outperformed the market over the past one month till 10 June 2013, rising 22.54% compared with the Sensex's 3.19% decline. The scrip, however, underperformed the market in past one quarter, sliding 17.02% as against Sensex's 1.23% fall.

The small-cap company has equity capital of Rs 14 crore. Face value of share is Rs 5.

Shares of Cinemax India gained 20.93% in two trading days from Rs 113.95 on 7 June 2013 after the company after market hours on Friday, 7 June 2013 said its board has given its in-principle nod for the proposed amalgamation of the company with PVR, the ultimate holding company.

In a separate announcement, PVR on 7 June 2013 said that its board of directors at a meeting held on 7 June 2013 gave in-principle approval for the proposed amalgamation of Cinemax India and Cine Hospitality with PVR.

Multiplex cinema chain operator PVR in November 2012 announced the acquisition of promoters' entire stake in rival Cinemax India. PVR later raised its stake in Cinemax India via a mandatory open offer. PVR currently holds 93.19% stake in Cinemax India through its wholly owned subsdiary Cine Hospitality (as per the shareholding pattern as on 31 March 2013).

Cinemax India's consolidated net profit declined 46.99% to Rs 8.38 crore on 0.85% growth in net sales to Rs 113.35 crore in Q3 December 2012 over Q2 September 2012.

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