PVR to raise Rs 350 cr from PE firm, dilute 10.7% stake

Film exhibition firm PVR Ltd today said it will raise Rs 350 crore from Indian private equity firm Multiple Alternate Asset Management, which will pick up 10.7 per cent stake in the company.

PVR has signed definitive agreements with funds managed by Multiple Alternate Asset Management (Multiples), under which the PE firm through its funds would subscribe 50 lakh equity shares of the multiplex chain operator for a 10.7 per cent fully diluted stake, the company said in a statement.

The company's board today approved issuing the equity shares at a price of Rs 700 apiece on a preferential basis, it added.

The board has also convened an extra-ordinary general meeting on July 10 to seek shareholders' approval for the same.

Commenting on the development, PVR Managing Director Ajay Bijli said the partnership was testimony to the faith that Multiples PR team reposed in the business model, promoters and the management of PVR team.

Multiples Managing Director and CEO Renuka Ramnath said: "PVR is a unique success story built on the back of strong financial support and endorsement from the same investor."

Multiples has associated with PVR in the journey from less than 29 screen towards building 1,000 screens, Ramnath added.

Earlier this week, PVR acquired real estate major DLF's DT Cinemas for Rs 500 crore in yet another consolidation in the cinema exhibition business in India.

PVR, which had in February 2010 aborted a similar deal with DLF, signed definitive agreement with the realty major to acquire 39 screens of DT Cinemas with a total capacity of around 9,000 seats.

As a result of the proposed acquisition, PVR will have a presence in 44 cities with 115 multiplexes and 506 screens, PVR said in a statement.

Shares of PVR Ltd were trading at Rs 660 in afternoon trade, up 1.66 per cent from the previous close on the BSE.