Listed multiplex majors like PVR and Inox Leisure took a beating in the stock markets on Friday even as the benchmark indices clocked marginal gains.
The losses of the multiplex majors were primarily on account of reports of a weak opening for Brahmastra, a multi-starrer movie made at a cost of over ₹400 crore and one which was expected to break Bollywood’s run of flops.
Shares of PVR lost 5.27 per cent or ₹101.95 to end the day at ₹1,834.15. During intra-day trades, the shares hit a low of ₹1,825.90. Similarly, Inox Leisure saw its shares tumble nearly five per cent or ₹25.70 to close at ₹494.40.
More importantly, the lacklustre opening of Brahmastra that boasts of a star cast including Amitabh Bachchan, Ranbir Kapoor, Alia Bhatt, Nagarjuna and a cameo by Shah Rukh Khan cost the investors of the two companies a combined loss of nearly ₹940 crore – the cumulative loss in market capitalisation of the two listed multiplex companies.
Market experts believe the huge hit taken by the multiplex majors was also because there were high hopes riding on the big-budget movie and it was expected that it would have put an end to the series of flops of Bollywood movies after high-profile productions including Laal Singh Chaddha and Shamshera.
Incidentally, PVR and Inox Leisure reported a combined record ₹883 crore quarterly net box office collections in April-June 2022. That’s a 19 per cent jump from the ₹743 crore, the two multiplexes made through net box office collections in April-June 2019.
FY20 numbers are taken as the benchmark for comparison as the pandemic affected the movie exhibition business badly.
It was also the highest-ever quarterly net box office collections for both PVR (₹530 crore) and Inox Leisure (₹353 crore) with back-to-back blockbusters from the South - RRR and KGF: Chapter 2 – playing a key role.
For instance, KGF: Chapter 2 (across all languages) accounted for ₹121.4 crore of PVR’s ₹530 crore net box office collection, making the Kannada film PVR’s all-time highest grosser.
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