PVR Inox board approves ₹300 crore share buyback at ₹1,450 per share

The cinema chain will buy back up to 20,68,965 fully paid-up equity shares through the tender offer route, with 4 September fixed as the record date

PVR Inox’s board has approved a proposal to buy back up to 20,68,965 fully paid-up equity shares at ₹1,450 per share for an aggregate amount of up to ₹300 crore, payable in cash, it said in a stock exchange filing.

 

The proposed buyback represents 4.09 per cent and 4.07 per cent of the aggregate of the company’s fully paid-up equity share capital and free reserves as per the latest audited standalone and consolidated financial statements of the company for the financial year ended March 31, respectively, on a proportionate basis through the “tender offer” route, using the stock exchange mechanism for acquisition of shares as prescribed under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, the filing said.

 

 

Murlee Manohar Jain, company secretary, has been appointed as the compliance officer for the buyback.

 

The company has fixed September 4 as the record date for determining shareholder eligibility and entitlement. DAM Capital Advisors Ltd, a Sebi-registered merchant banker, has been appointed as the manager to the buyback.

 

The cinema chain major said the buyback size excludes transaction-related expenses, including brokerage, applicable taxes, securities transaction tax, goods and services tax, stamp duty, filing fees, legal and advisory charges, intermediary fees, public announcement and printing expenses, and other incidental costs.

 

“The board/ buyback committee may, one working day prior to the record date, increase the buyback price and decrease the number of equity shares proposed to be bought back under the buyback, such that there is no change in the buyback size, in terms of Regulation 5(via) of the SEBI buyback regulations,” the filing said.

 

The company also said that the board has noted the intention of the promoter and members of the promoter group of the company to participate in the buyback.

 

For overseeing the process, the company has constituted a buyback committee and delegated to it the necessary powers to undertake actions related to the proposed transaction.

 

PVR Inox's share price closed 1.22 per cent lower at ₹1,206 apiece on the NSE.