PVR firms up on fixing rights issue price

Shares of the cinema chain operator rose 2.34% to Rs 1,067.80 after the company said its board has fixed the rights issue price at Rs 784 per equity share.

Last month, PVR's board approved rights issue of equity shares for an amount aggregating up to Rs 300 crore. PVR on Monday (6 July) said the rights issue will open from 17 July to 31 July.

The rights issue price has been fixed at Rs 784 per equity share, while the entitlement ratio is 7 fully paid-up equity shares for every 94 equity share held by eligible shareholders as on the record date i.e. 10 July 2020.

On the technical front, the stock's RSI (relative strength index) stood at 55.058. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading in between its 50-day moving average (DMA) placed at Rs 973.87, with will act as a support in the near term and its 200-day moving average (DMA) placed at Rs 1,527.74, would act as a resistance in the upcoming trade.

The cinema chain operator reported consolidated net loss of Rs 74.61 crore in Q4 March 2020 compared with net profit of Rs 46.75 crore in Q4 March 2019. Consolidated net sales dropped 23% to Rs 645.13 crore in Q4 March 2020 over Q4 March 2019.

PVR is a film entertainment company, which is engaged in the motion picture exhibition in cinemas. Currently, the company operates 845 screens in 176 properties in 71 cities across India and Sri Lanka.

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