PVR, Inox Leisure shares hit 52-week high post merger deal
Inox will merge with PVR in a share swap ratio of three shares of PVR for every ten shares of Inox.
- Mar 28, 2022,
- Updated Mar 28, 2022 10:20 AM IST
Shares of PVR zoomed 10 per cent to hit a new 52-week high of Rs 2,010.35 on BSE after the company on Sunday said its board of directors has approved a scheme of amalgamation of INOX Leisure Limited (transferor company) into and with the company. The board of INOX also approved the merger scheme.
Likewise, Inox Leisure Limited stock also jumped 20 per cent and hit an upper circuit to touch a new 52-week high of Rs 563.6. With a market capitalisation of more than Rs 6,600 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
As per the agreement, Inox will merge with PVR in a share swap ratio of three shares of PVR for every ten shares of Inox.
"Upon obtaining all approvals, when the merger becomes effective, INOX will merge with PVR. Shareholders of INOX will receive shares of PVR in exchange of shares in INOX at the approved share exchange (“swap”) ratio," PVR said.
Post the merger, PVR Promoters will have 10.62 per cent stake while INOX Promoters will have 16.66 per cent stake in the combined entity. EY is the exclusive financial advisor on the transaction.
The combined entity will be named as PVR INOX Limited with the branding of existing screens to continue as PVR and INOX respectively. New cinemas opened post the merger will be branded as PVR INOX.
"Post the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR. Upon effectiveness of the scheme, the Board of Directors of the merged company would be re-constituted with total board strength of 10 members and both the promoter families having equal representation on the Board with 2 board seats each," the two companies said in separate regulatory filings.
PVR's Ajay Bijli will be appointed as the Managing Director and Sanjeev Kumar would be appointed as the Executive Director.
Inox's Pavan Kumar Jain will be appointed as the Non- Executive Chairman of the Board and Siddharth Jain would be appointed as Non-Executive Non-Independent Director in the combined entity.
Shares of PVR zoomed 10 per cent to hit a new 52-week high of Rs 2,010.35 on BSE after the company on Sunday said its board of directors has approved a scheme of amalgamation of INOX Leisure Limited (transferor company) into and with the company. The board of INOX also approved the merger scheme.
Likewise, Inox Leisure Limited stock also jumped 20 per cent and hit an upper circuit to touch a new 52-week high of Rs 563.6. With a market capitalisation of more than Rs 6,600 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
As per the agreement, Inox will merge with PVR in a share swap ratio of three shares of PVR for every ten shares of Inox.
"Upon obtaining all approvals, when the merger becomes effective, INOX will merge with PVR. Shareholders of INOX will receive shares of PVR in exchange of shares in INOX at the approved share exchange (“swap”) ratio," PVR said.
Post the merger, PVR Promoters will have 10.62 per cent stake while INOX Promoters will have 16.66 per cent stake in the combined entity. EY is the exclusive financial advisor on the transaction.
The combined entity will be named as PVR INOX Limited with the branding of existing screens to continue as PVR and INOX respectively. New cinemas opened post the merger will be branded as PVR INOX.
"Post the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR. Upon effectiveness of the scheme, the Board of Directors of the merged company would be re-constituted with total board strength of 10 members and both the promoter families having equal representation on the Board with 2 board seats each," the two companies said in separate regulatory filings.
PVR's Ajay Bijli will be appointed as the Managing Director and Sanjeev Kumar would be appointed as the Executive Director.
Inox's Pavan Kumar Jain will be appointed as the Non- Executive Chairman of the Board and Siddharth Jain would be appointed as Non-Executive Non-Independent Director in the combined entity.