Multiplex operators PVR and INOX Leisure on Tuesday said that they have received clearances for their merger from bourses NSE and BSE. "The company has received observation letter with 'no adverse observations' dated June 20, 2022 from BSE Ltd and observation letter with 'no objection' dated June 21, 2022 from National Stock Exchange of India Ltd respectively in relation to the scheme of amalgamation," said PVR in a regulatory filing.
This was also confirmed by INOX through an identical regulatory filing. A 'no objection' certificate from the exchange is a mandatory step for getting clearance from the National Company Law Tribunal and other regulatory authorities for any scheme of amalgamation.
On March 27 this year, PVR and INOX Leisure announced a merger deal to create the largest multiplex chain in the country with a network of more than 1,500 screens to unlock the opportunities in tier III, IV & V cities, besides in the developed markets. The combined entity will be named PVR INOX Ltd with the branding of existing screens to continue as PVR and INOX, respectively. New cinemas opened post the merger will be branded as PVR INOX, the companies had said on March 27.
As per the agreement, INOX will merge with PVR in a share-swap ratio of 3 shares of PVR for every 10 shares of INOX. Post merger, promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR.PVR promoters will have a 10.62 per cent stake while INOX promoters will have a 16.66 per cent stake in the combined entity, it added.