CRISIL revises rating outlook on Inox Leisure bank facilities; Stock down 1%

4 Apr 2022 , 02:14 PM

CRISIL Ratings has revised its rating outlook on the long-term bank facilities of INOX Leisure Limited from ‘CRISIL A+/Stable’ to ‘CRISIL A+/Watch Positive’ and revised the Short Term Rating from ‘CRISIL A1’ to ‘CRISIL A1/Watch Positive’ rating.

The rating action follows the announcement made by the company on March 27, 2022, regarding approval from the boards of INOX and PVR Inox Leisure inking merger deal to create largest multiplex chain in India

The combined entity will be named PVR Inox Limited with the branding of existing screens to continue as PVR and Inox. As per the agreement, Inox will merge with PVR in a share swap ratio of 3 shares of PVR for every 10 shares of Inox.

CRISIL Ratings believes that the amalgamation of these entities would help the merged entity to lead the cinema exhibition industry with a significant market share.

At around 2.20 pm, Inox Leisure Ltd was trading at Rs513 apiece down by Rs5.15 or 0.99% from its previous closing of Rs518.15 apiece on the BSE.