PVR share price falls 2%, company looks to raise Rs 300 cr via rights issue
The Ajay Bijli-owned firm is looking to raise around Rs 300 crores via the rights issue route.
May 22, 2020 / 01:28 PM IST
PVR share price was down 2 percent intraday on May 22.
As reported by Moneycontrol, the Ajay Bijli-owned firm is looking to raise around Rs 300 crores via the rights issue route at a time when the film exhibition business has been dealt a body blow due by the coronavirus outbreak.
“PVR Cinemas has appointed Axis Capital as the merchant banker for the proposed rights issue,” a source told Moneycontrol.
A second source said that the promoters of PVR Cinemas, along with the firm’s private equity investors Warburg Pincus and Multiples Alternate Asset Management are likely to participate in the issue. “The plan is to launch the rights issue in July,” a source said.
PVR Ltd, Axis Capital and Warburg Pincus declined to respond to an email query from Moneycontrol.com.
The stock, which has crashed almost 58 percent in the last three months, was quoting at Rs 861.00, down Rs 18.00, or 2.05 percent at 1305 hours. It has touched an intraday high of Rs 890.00 and an intraday low of Rs 856.50.
PVR, which had 176 properties and 845 screens across India as on March 16, 2020, had completed a Qualified Institutional Placement (QIP) in October 2019. The fund-raising round led to an inflow of Rs 500 crore.
In an interview with CNBC TV-18, PVR Limited chairman Bijli was optimistic that movie halls would reopen by mid-July and the business could pick up by mid-August.
According to a April 1, 2020 report by credit rating agency ICRA, PVR had adequate liquidity and a significant part of its QIP proceeds “were utilised towards prepayment of existing debt obligations, thereby keeping the capital structure healthy”.