BSE and NSE have approved the merger of PVR and INOX

22 Jun 2022 , 08:55 AM

PVR and INOX Leisure, two multiplex operators, announced on Tuesday that the NSE and BSE have approved their merger. “In regard to the scheme of merger, the firm has obtained observation letters with ‘no adverse observations’ dated June 20, 2022, from BSE Ltd and observation letters with ‘no objection’ dated June 21, 2022, from the National Stock Exchange of India Ltd,” PVR stated in a regulatory filing.

INOX verified this in a regulatory filing that was similar. A ‘no objection certificate from the exchange is required before any scheme of merger can be approved by the National Company Law Tribunal and other regulatory bodies.

PVR and INOX Leisure announced a merger pact on March 27 this year to form the country’s largest multiplex chain, with a network of over 1,500 screens, to capitalize on prospects in tier III, IV, and V cities, as well as developed markets. The merged company will be known as PVR INOX Ltd, with current screens continuing to be branded as PVR and INOX, respectively. PVR INOX will be the name of new theatres that operate after the merger, the firms said on March 27.

According to the agreement, INOX will combine with PVR in a share-swap ratio of 3 PVR shares for every 10 INOX shares. INOX promoters will join the existing promoters of PVR as co-promoters in the amalgamated firm after the merger.

PVR promoters will own 10.62 percent of the merged firm, while INOX promoters would own 16.66 percent, according to the statement.