Investors lapped up shares of PVR on Monday on hopes the company may acquire Chennai-based movie exhibition company. The stock rallied as much as 4.7 percent to hit a record high of Rs 751.
"The Ajay Bijli led PVR group seems set to acquire Chennai's premier movie exhibition company SPI Cinemas, popularly known as Sathyam Cinemas. The deal may close for a rather steep valuation of approximately Rs 750-1,000 crore for just 40 odd screens, located predominantly in the Southern metro," said a media report quoting unnamed sources.
The likely valuation of this deal seems very high and completely incomparable with recent deals. Last month, Carnival Cinemas had paid a little over Rs 700 crore to buy out Anil Ambani's Big Cinemas that has 242 screens across the country.
The SPI Group currently runs a cinema exhibition, distribution and production business but are known for their portfolio of some of the most iconic cinema destinations across South India, said the report.
According to the company's website, it currently operates close to 40 screens under 5 categories -- Sathyam, Escape, thecinema, Luxe, their uber premium offering and S2 Cinemas.
PVR, with 454 screens in 102 locations across 43 cities, is the largest cinema exhibitor in the country today.
At 11:03 hours IST, the stock was quoting at Rs 737.65, up Rs 20.35, or 2.84 percent amid high volumes on the Bombay Stock Exchange.
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