NCLT approves PVR-INOX merger

Multiplex operators PVR and INOX have received the National Company Law Tribunal’s (NCLT) Mumbai bench approval for their merger. The tribunal approved the scheme of merger in a verbal order and a written order is expected over the next 15-20 days.

The merger ratio that has been approved is three shares of PVR for 10 shares of INOX. The merger was subject to approvals from the National Company Law Tribunal (NCLT), stock exchanges, Securities and Exchange Board of India (SEBI), as well as shareholders.

In March last year, PVR and INOX Leisure had announced a merger deal to create the largest multiplex chain in the country with a network of more than 1,500 screens. The combined entity will be named PVR INOX Ltd with new cinemas opened being branded as PVR INOX.

Post the merger, INOX promoters will own a 16.7 percent stake, while PVR promoters will have a 10.6 percent stake in the combined entity. It is expected that the screen count will increase to 3,000-4,000 screens in five years for the combined entity.

While Ajay Bijli will be the Managing Director of the combined entity, Sanjeev Kumar would be appointed as the Executive Director. INOX Group Chairman Pavan Kumar Jain will be appointed as the Non-Executive Chairman of the Board and Siddharth Jain will be appointed as Non-Executive Non-Independent Director.