The Mumbai bench of the National Company Law Tribunal (NCLT) approved the merger of multiplex operators PVR and INOX on Thursday.
“We are pleased to inform you that the NCLT, Mumbai Bench, has approved the Proposed Scheme today, January 12, 2023. The Company is awaiting a copy of the detailed order, which will be disclosed to the stock exchanges as soon as it is received ” PVR stated in a stock exchange filing.
According to the merger announcement on 27 March 2022, the merged entity, to be known as PVR-INOX, will become India’s largest film exhibition company, operating 1,546 screens across 341 properties in 109 cities.
Instead of refurbishing existing properties, the combined company intends to open 200 new screens each year under the brand name PVR-INOX after the merger.
The new screens will require a capital investment of Rs 500 crore.
Analysts estimate that the combined entity will control 50 per cent of multiplex screens and 16 per cent of the overall market, including single screens. In terms of shareholding in the merged entity, the INOX promoters will own 16.66 per cent, while the PVR founders will own 10.62 per cent.
Pavan Kumar Jain of INOX will serve as non-executive chairman of the merged entity, while Ajay Bijli of PVR will serve as MD.
In the combined entity, his brother Sanieev Kumar Bili will be the executive director, and INOX Leisure Director Siddharth Jain will be a non-executive, non-independent director.
To diversify revenue, the PVR-INOX combination is also expected to venture into film production and expand its distribution and food and beverage businesses following the proposed merger.
