INOX: PVR-INOX merger receives approval from BSE and NSE

Multiplex operators PVR and announced on Tuesday that they had received clearances for their merger from the NSE and BSE stock exchanges. “The Company has received a ‘no adverse observations’ observation letter dated 20 June 2022 and a ‘no objections’ observation letter dated 21 June 2022 from the National Stock Exchange of India Ltd in relation to the proposed merger,” he told PVR in an application for admission.

This was also confirmed by INOX with an identical application for approval.

An exchange clearance is a mandatory step in obtaining approval from the National Company Law Tribunal and other regulators for a merger scheme.

On March 27 this year, PVR and Leisure announced a merger deal to create the country’s largest multiplex chain with a network of more than 1,500 screens to expand opportunities in Tier III, IV and V cities, as well as in to open up to the developed markets.

The combined company will be known as PVR INOX Ltd, with existing screens continuing to be branded as PVR and INOX respectively. New cinemas opening after the merger will be branded as PVR INOX, the companies announced on March 27.

Under the terms of the agreement, INOX will merge with PVR at a share exchange ratio of 3 shares of PVR for every 10 shares of INOX.

After the fusion, the promoters from INOX together with the existing promoters from PVR become co-promoters in the fused entity.

PVR promoters will have a 10.62 percent stake while INOX promoters will have a 16.66 percent stake in the merged entity, it added.