Reliance MediaWorks sells Big Cinemas to Carnival

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Moneycontrol Bureau

In a sign of further consolidation in India’s multiplex industry, Anil Dhirubhai Ambani Group (ADAG) firm Reliance MediaWorks said it had signed a definitive agreement with Carnival Cinemas to sell its multiplex business.

The largest-ever deal yet in the multiplex business, the sale “is in furtherance of Reliance Capital's stated objective of focusing purely on its core financial services businesses, significantly reducing exposure to non-core investments in the media and entertainment sector, and reducing overall debt,” the parent firm said in a statement.

The companies did not disclose the amount at which the deal was struck, except to mention that it would help Reliance Capital reduce its financial leverage by Rs 700 crore.

The deal excludes real estate owned by RMW at IMAX Wadala and other properties, which are intended to be separately monetized for an approximate value of Rs 200 crore, the statement added.

Reliance Capital will have the option to acquire a pre-IPO minority stake in Carnival Cinemas at an appropriate discount, upon eventual listing of the company.

“I am thankful to Mr. Anil D. Ambani, Chairman, Reliance Group, for his support to a first generation entrepreneur like me, and in facilitating this transaction with Carnival Cinemas in preference to other leading cinema chains. We are targeting to achieve 1,000 screens by the year 2017, and look forward to the continued support of Reliance Group in our future growth,” Carnival Chairman Shrikant Bhasi said.

Big Cinemas operates 258 screens in the country and with its existing 50 screens, the acquisition will turn Carnival into the country’s third-largest multiplex operator. PVR is the leader with slightly less than 500 screens while Inox comes in second at 358.

High leverage, taken on during times of easy capital, combined with a steep economic slowdown in the past two years took a toll on discretionary consumer spending, which had started to weigh on players in the capital-intensive multiplex business.

The deal comes soon after several other deals announced in the recent past. Recently, Inox acquired Satyam Cineplex for Rs 240 crore (this came a few years after Inox’s buyout of Fame Cinemas).

Carnival had also bought HDIL’s Broadway Cinemas recently for Rs 110 crore. While in 2012, PVR bought out Cinemax in a deal pegged at Rs 395 crore.

Reliance MediaWorks had earlier struck an agreement with Prime Focus to merge its film services division.