PVR Inox plunges 8%; sees sharpest intra-day fall in six months; here's why

According to reports, PVR Inox asked a senior executive to leave in April after an internal investigation into alleged kickbacks received from developers involved in cinema properties construction.

PVR Inox share price movement

 

PVR Inox share price plunged 8 per cent to ₹1,128.50 on the BSE in Monday’s intra-day deals, recording its sharpest intra-day fall in the past six months. Earlier, on March 2, 2026, the stock price of multiplex operator tanked 12 per cent intra-day.

 

The sharp fall in PVR Inox was attributed to reports that the company asked a senior executive to leave in April after an internal investigation into alleged kickbacks received from developers involved in cinema property construction.

 

At 09:54 AM, PVR Inox quoted 6 per cent lower at ₹1,150, compared to 0.31 per cent decline in the BSE Sensex. A combined 1 million equity shares changed hands on the NSE and BSE.

 

 

Why did PVR Inox's share price record its sharpest intra-day fall in 6 months?

 

According to Economic Times report, PVR Inox conducted an internal investigation into alleged payments received from developers involved in cinema-property projects. The alleged payments reportedly took place over several years and could total up to ₹200 crore. The executive identified in the report is Pramod Arora, who was responsible for Growth & Investment and played an important role in PVR’s expansion into smaller cities; he resigned in May, 2026, ICICI Securities said in a note.

 

The company became aware of the allegations sometime in April, following which Arora and a few other employees were asked to leave with immediate effect.

 

A declaration signed by Arora also restricted him from joining rival cinema chains and approaching PVR Inox's existing vendors. The document provides for potential legal action if the restrictions are breached. Meanwhile, PVR Inox's financial year 2025-26 (FY26) annual report stated that Pramod Arora, Chief Executive Officer-Growth & Investment and Chief Cost & Operational Efficiency Officer, a Senior Management Personnel (SMP) of the Company (as per Regulation 16(1)(d) of SEBI Listing Regulations), stepped down from the aforesaid position w.e.f. May 24, 2026, pursuant to his resignation from the company's services due to personal reasons. PVR Inox was formed through the merger of PVR and Inox Leisure in 2023. As of late August, the company has 1,786 screens across 356 properties in 113 cities in India and Sri Lanka. It plans to add another 1,000 screens over the next five years, with franchise-led expansion expected to account for a significant share of the additions.  

PVR Inox to buyback shares at ₹1,450 per share

 

PVR Inox’s board on August 31, 2026, approved a proposal to buy back up to 2.07 million 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 stock turned ex-date for buyback on September 4.

 

The board noted the intention of the promoter and members of the promoter group to participate in the proposed buyback.

 

PVR Inox is conducting this buyback through the tender offer route. This means eligible shareholders can offer their shares back to the company at the announced price of ₹1,450 per share.

 

A share buyback is when a company uses its own cash to purchase shares from existing shareholders. Instead of distributing cash through dividends, the company reduces the number of shares available in the market. Disclaimer: Views and outlook shared on the stock/stocks belong to the respective analyst/brokerages and are not endorsed by Business Standard. Readers' discretion is advised.