Cinemax India gallops on board's nod for amalgamation with PVR

The announcement was made after market hours on Friday, 7 June 2013.

Shares of PVR were 1.39% up at Rs 329.40.

Meanwhile, the S&P BSE Sensex was up 87.26 points or 0.45% at 19,516.49.

On BSE, 1,189 Cinemax India shares changed hands, as against average daily volume of 1,009 shares in past one quarter.

The stock hit a low of Rs 121 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 had outperformed the market over the past one month till 7 June 2013, surging 25.36% compared with the Sensex's 2.3% fall. The scrip had, however, underperformed the market in past one quarter, sliding 20.79% as against Sensex's 0.08% gain.

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

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 patter 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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