In a major boost to the film and entertainment industry, the Mumbai bench of the National Company Law Tribunal (NCLT) has approved the merger of PVR and INOX. This means that the country’s two top multiplex chains i.e., PVR Limited and INOX Leisure will become one after the amalgamation.
According to a PTI report, a regulatory filing mentions that INOX Leisure is the transferor and PVR is the transferee company in this case. It also reads, “NCLT, Mumbai Bench, has allowed the proposed scheme today i.e. 12th January 2023,” as per the report.
The merger of PVR-INOX has been much talked about since 2022. It must be noted that being the country’s top multiplexes, both INOX and PVR were also front-running competitors.
As per the report, in March 2022 PVR and INOX announced their merger in a surprise move. Soon after, in June 2022, both NSE and BSE granted their approvals for the merger. However, it was only in October 2022 that PVR received a final nod from its shareholders, allowing a merger with INOX Leisure, the report adds.
“We believe, the PVR-INOX (INOL) merger, if it materialises in the near term, may trigger multiple synergies immediately, in the form of advertising revenues and convenience fee for the merged entity, which should directly improve overall profitability," PTI quoted Elara Capital as saying.
As of now, the finer nuances of the PVR-INOX merger are yet to be disclosed. In addition to this, a copy of the final NCLT order is also awaited and once it is received by the companies, the same shall be disclosed to the public.
