PVR May Raise Rs 700 Crore Through QIP Issue
At current prices, the QIP will lead to a 7-8 percent dilution of PVR’s equity.
India’s largest operator of multi-screen theaters may launch a qualified institutional placement within two weeks to raise nearly Rs 700 crore, or $100 million, two people aware of the development told BloombergQuint.
The QIP, at the current market price, will lead to a 7-8 percent dilution of PVR Ltd.’s equity, BloombergQuint’s calculations showed.
The multiplex chain is likely to use the proceeds to pare debt and add screens, among other plans, one of the persons cited earlier said on the condition of anonymity as he isn’t authorised to speak to media.
The company has yet to respond to BloombergQuint’s emailed queries.
Earlier this year, shareholders had approved a resolution to authorise the company’s board to raise up to Rs 750 crore via equity route. PVR has a gross debt of about Rs 1,375 crore and a net debt of Rs 1,280 crore as on Sept. 30.
The company operates 800 screens in 69 cities across India, it said in a second-quarter investor update. In the first quarter, PVR had guided to add 80-100 screens in the ongoing financial year.
Of the 26 analysts tracking the company, 19 recommend a ‘Buy’, six suggest a ‘Hold’ while one has a ‘Sell’ rating. The Bloomberg consensus 12-month return potential of the stock is 12.8 percent.