Key Points of PVR Stake sell in Block Deal by Warburg Pincus:
- Warburg Pincus, a global private equity firm, has sold its entire 2.49% stake in PVR, an Indian multiplex giant, in a block deal.
- The deal, which took place on the Bombay Stock Exchange, aggregated more than ₹380 crore.
- Domestic mutual funds including SBI Mutual Fund and ICICI Prudential Mutual Fund were among the top buyers of PVR on the open market.
- Berry Creek Investment, a Warburg Pincus affiliate, sold 24,39,301 equity shares at a price of ₹1,559.35 per share in PVR through the block deal.
- SBI Mutual Fund bought 1,469,650 equity shares, while ICICI Prudential Mutual Fund picked up 641,300 equity shares in PVR.
- French financial services company, Societe Generale, also participated in the deal by purchasing 328,351 equity shares in PVR.
- Despite the market downturn, Prabhudas Lilladher, in a research report, has retained its ‘Buy’ recommendation on PVR.
- According to Jinesh Joshi, a research analyst at Prabhudas Lilladher, the proposed PVR-INOX merger is expected to enhance the strength of both entities and generate revenue/cost synergies.
Details of PVR Stake sell in Block Deal by Warburg Pincus
Warburg Pincus Sells Entire Stake in PVR in Block Deal, Domestic Mutual Funds Step In
Global private equity firm, Warburg Pincus, has exited its position in Indian multiplex giant PVR by selling its entire 2.49% stake through its affiliate, Berry Creek Investment, in a block deal on Monday. The deal, which took place on the Bombay Stock Exchange, aggregated more than ₹380 crore.
However, major domestic mutual funds including SBI Mutual Fund and ICICI Prudential Mutual Fund were among the top buyers in PVR on the open market.
Berry Creek Investment sold 24,39,301 equity shares at a price of ₹1,559.35 per share in PVR through the block deal, representing its entire stake in the Ajay Bijli-led company. Meanwhile, SBI Mutual Fund bought 1,469,650 equity shares at ₹1,559.35 apiece, while ICICI Prudential Mutual Fund picked up 641,300 equity shares at ₹1,559.35 apiece. French financial services company, Societe Generale, also participated in the deal by purchasing 328,351 equity shares in PVR.
PVR’s share price closed at ₹1,546.60 apiece, down by 1.81% on the BSE on Monday, with a market capitalisation of nearly ₹15,150 crore.
Despite the market downturn, Prabhudas Lilladher, in a research report dated March 15, has retained its ‘Buy’ recommendation on PVR. According to Jinesh Joshi, a research analyst at Prabhudas Lilladher, the proposed PVR-INOX merger is expected to enhance the strength of both entities and generate revenue/cost synergies by improving bargaining power with various stakeholders in the value chain, among other benefits.
Joshi’s note stated that the merged entity is expected to report footfalls of 170 million/185 million and pre-IND AS EBITDA margin of 19.7%/21.0% in FY24E/FY25E, respectively. Furthermore, Joshi’s note recommended retaining a ‘BUY’ on the stock with a target price of ₹2,096.
About PVR:
PVR is India’s largest and most premium film exhibition Company. It pioneered the multiplex revolution in India by establishing the first multiplex cinema in 1997 at New Delhi and continue to lead the market with relentless focus on innovation and operational excellence to democratise big‑screen movie experience.
It currently operates a cinema network 854 screens across 74 cities and 173 cinemas with ~1.8 lakh seats.
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