PVR-INOX merger gets NCLT approval

New Delhi: The National Company Law Tribunal (NCLT) has approved the merger of PVR Ltd and Inox Leisure Ltd. The merged entity -- PVR Inox Ltd -- will be India’s largest film exhibition entity with a network of more than 1,500 screens.

While existing multiplex screens will retain their brands, new cinemas opened post the merger will be branded PVR Inox. 

After the merger, Inox promoters will own a 16.66% stake in the combined entity, while PVR founders will own 10.62%, according to a stock exchange filing. PVR’s chairman and managing director Ajay Bijli would serve as managing director of the merged entity, and Sanjeev Kumar Bijli would be the executive director.

Pavan Kumar Jain, chairman of Inox, would be appointed non-executive chairman. The company’s director, Siddharth Jain, would be appointed non-executive non-independent director in the combined entity. The board of the merged company would have 10 directors, and both the promoter families will have equal representation with two board seats each.

The consolidation in the industry comes after pandemic-led closures of theatres and the rise in popularity of streaming platforms. The cash crunch caused by the prolonged closures has made it tough for cinema chains to invest in new properties and easier to partner with rivals to ramp up screen count, analysts have said.

The merged company will operate 1,546 screens across 341 properties and 109 cities.

Together, the two companies are looking at opening 180-200 new screens every year, especially in small towns and the hinterland, which are grossly under-screened, they said.

Inox Leisure Ltd is part of the Inox Group, an Indian conglomerate with interests in wind energy, renewables and speciality chemicals.