{"id":10015,"date":"2022-06-22T17:22:09","date_gmt":"2022-06-22T11:52:09","guid":{"rendered":"https:\/\/blogs.univest.in\/?p=10015"},"modified":"2022-10-13T14:40:42","modified_gmt":"2022-10-13T09:10:42","slug":"mega-merger-of-indias-top-two-multiplexes-gets-statutory-approval","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/mega-merger-of-indias-top-two-multiplexes-gets-statutory-approval\/","title":{"rendered":"Mega merger of India’s top two multiplexes\u00a0gets statutory approval"},"content":{"rendered":"\t\t
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Despite the pandemic’s severe impact on the film exhibition industry over the last two years, multiplex chains are expanding aggressively, fueled by the sector’s rapid recovery, strong demand for big-screen viewing, and long-term growth possibilities. A major development is that PVR, India’s largest multiplex operator, has announced a merger with Inox, the country’s second largest multiplex operator. This merger will result in the formation of India’s largest multiplex firm in terms of screen count and seating capacity.\u00a0<\/p>\n

As the pandemic played havoc for the theatre business, business came to a halt, and the rise of OTT (over-the-top) did not help PVR & INOX either. Their revenue was slashed by 91% for PVR and 92% for INOX in FY21, and an uncertain future combined with a disruptive present created a marriage of compulsion. Earlier, these two players competed fiercely, although some regions were always their respective strongholds\u2014north, south, and west India for PVR, and east and central for INOX. These two have now agreed to keep the differences aside and to create a robust organization. \u00a0<\/p>\n

Now, with their combined strength, PVR-INOX will have 1,546 screens across 109 cities. It is a combination with substantial ability to derive significant cost and revenue synergies in addition to driving a serious bargain across all components of the multiplex business. Not surprisingly, analysts and industry trackers are enthusiastic and the stocks of both companies. Ever since the merger was announced on March 27, 2022, share prices of both entities surged to new highs. The share price of PVR and Inox surged 10% and 20%, intra-day respectively, after the merger was announced.\u00a0<\/p>\n

The deal has a transaction value of $1.22 billion, which will create the largest entertainment company in the country.\u00a0<\/p>\n

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