Cinema exhibitor PVR today said it would merge the production division of its wholly-owned subsidiary, PVR Pictures, with itself.
In July, PVR had bought out JP Morgan Mauritius Holdings and India Advantage Fund from PVR Pictures for an undisclosed amount as it looks to focus on cinema exhibition, while going slow on production business.
The company had acquired 40% stake held by JP Morgan Mauritius Holding and ICICI Venture's India Advantage Fund in equal proportion.
In a filing to the Bombay Stock Exchange, it said: "The company board has approved a composite scheme of arrangement to merge production business undertaking of PVR Pictures with the company and to carry financial restructuring."
This would require amendment in Articles of Association and in the object clause of Memorandum of Association of the company, it said.
Commenting on the development PVR CFO Nitin Sood said: "PVR Pictures is engaged in film production and distribution both. After the merger of the production division with PVR, PVR Pictures will purely become a film distribution company."
PVR today posted an over three-fold increase in its consolidated net profit for the quarter ended June 30, 2011, at Rs 15.49 crore, compared to Rs 5.07 crore in the same quarter last fiscal.
The firm's consolidated net sales increased 14.22% to Rs 116.46 crore during the three months ended June 30, 2011, as against Rs 101.96 crore in the corresponding period of last financial year.
The movies co-produced by PVR Pictures include Taare Zameen Par, Jaane Tu Ya Jaane Na, Contract and Mere Khwabon Mein Jo Aaye.
Apart from the movies produced, some of the films distributed by PVR Pictures include Ghajini, Golmaal Returns, Sarkar Raj, Aviator, Chicago and Don.
PVR's scrips closed at Rs 124, marginally down from previous close on the BSE.