Will The PVR-Inox Merger Affect The Industry?
The National Company Law Tribunal's mumbai bench granted authorisation for the merging of well-known multiplex brands PVR and INOX. Within two weeks, we expect a written order. Three PVR shares would be merged for every ten INOX shares. In order to create the largest multiplex chain in India, with a network of more than 1500 screens, PVR and INOX announced their merger last year. In five years, PVR Chairman ajay Bijli wants to raise the combined entity's screen count to 3,000–4,000 screens. PVR INOX Limited will be the name of the theatre chain.
According to industry observers, the combined company will control 50% of the country's multiplex screens, while PVR and INOX will have a combined 42% of the box office market for hindi and English-language films. This implies that the combined company will now have far more negotiating leverage in regards to rental fees, content costs, marketing expenditures, etc. The merger is anticipated to reduce the number of players in the country's multiplex sector to two.
Senior VP of Elara Securities karan Taurani joins ET NOW to discuss the merger of Inox and PVR. In a few days, the merger's final paperwork are anticipated to be released. karan Taurani explores the significance of the historic merger as well as the potential and difficulties it brings.