PVR | GEM Equity has acquired 3.5 lakh equity shares in company at Rs 1,315.11 per share on the NSE.
Multiplex chain PVR Ltd is eyeing Rs 500 crore revenue from South India based SPI Cinemas, which the former is in the process of acquiring, by financial year 2019-20. SPI Cinemas, which operates 76 screens across 17 properties in 10 cities under several brands Sathyam, Escape, Palazzo, The Cinema, S2 Cinema, has reported revenue of Rs 309.6 crore in 2017-18.
"We expect SPI Cinema acquisition to contribute Rs 500 crore revenue by financial year 2020. We also expect this acquisition to help us diversify content risk further with good mix of regional, Bollywood and Hollywood films," Kamal Gianchandani, CEO, PVR Pictures & Head of Strategy and Planning, told analysts in a conference call.
Earlier this week, PVR announced it is acquiring 71.69 percent stake in SPI Cinemas for about Rs 633 crore in an all cash deal. The company's board also approved the issuance of 1.6 million shares of PVR for the residual stake.
The company said that acquisition is in line with the its continual growth and expansion strategy and will help it achieve its vision of having 1,000 screens by financial year 2020.
Post the transaction, PVR will have 706 screens operational across the country and the company said this acquisition will make it number 1 operator in top 3 cities of South India Chennai, Bengaluru and Hyderabad.
When asked if the company is looking at more acquisition opportunities, he said: "We are very conscious of (acquiring a player) that is a perfect fit in terms of quality and value proposition. There are not too many opportunities out there now but if something comes our way we will look at it."
In March this year, PVR has said it is evaluating acquisition opportunities of cinema exhibition chains and plans to raise up to Rs 1,000 crore, to carry out the transaction, through issuance of non convertible debentures (NCDs).
In 2016, PVR had also acquired 32 screens of DT cinemas from realty major DLF for Rs 433 crore. PVR operates over 600 screens in 52 cities in India.