Share price of multiplex operator PVR gained over 9% intra day after the firm's rights issue was subscribed 2.24 times. The better-than-expected subscription of the rights issue at a time when cinema halls are closed for over four months buoyed sentiment around the share.
The midcap stock has gained after 4 days of consecutive fall. The stock touched an intraday high of Rs 1228.7, gaining 9.35% on BSE. The share stands higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages. The share has lost 18% in one year and fallen 37.2% since the beginning of this year.
Later, the midcap share ended 6.12% or Rs 68 higher at Rs 1192 on BSE. Total 2.55 lakh shares changed hands amounting to turnover of Rs 30.27 crore. The rights issue was open for subscription from July 17 to July 31. It received application for 85.29 lakh shares (worth Rs 672 crore), against issue size of 38.23 lakh shares.
The Rs 300-crore rights issue, which closed on Tuesday, received a strong response from shareholders at a time when cinema screens across the country have been closed for over four months amid coronavirus outbreak.
"I would like to express my gratitude to our dear and esteemed shareholders for their support and confidence in PVR and making this rights issue a landmark in media and entertainment in India," said Ajay Bijli, chairman and MD, PVR.
Following the share allotment, the paid-up equity share capital of the company has increased to Rs 55.17 crore consisting of 5.51 crore fully paid-up equity shares of Rs 10 each. On June 8, the board of PVR approved issue of equity shares of face value of Rs 10 each by way of a rights issue to the eligible equity shareholders of the company for an amount aggregating up to Rs 29,979.16 lakh.
PVR's Q4 performance in last fiscal was impacted by the Covid-19 pandemic. The firm posted a net loss of Rs 74.61 crore in Q4 against net profit of Rs 46.75 crore in the same period last year.
Revenue from operations in Q4 stood at Rs 645.13 crore compared to Rs 837.63 crore in the corresponding quarter a year ago. PVR booked a one-time write off of perishable inventory of Rs 1.83 crore in March 2020 due to spoilage due to closure of movie halls after COVID-19.