3 investors offload PVR shares worth over ₹759 cr, stock dips 4%

Market


PVR shares slumped by 84.95 or 4.40% to end at 1,844.50 apiece on BSE. The shares plunged by nearly 97 or 5% overall in the day with an intraday low of 1,832.55 apiece.

The company’s market cap is around 11,267.30 crore.

As per the bulk deals data on BSE, Plenty Private Equity FII I sold 762,499 equity shares at 1,877.14 per share — aggregating to nearly 143.13 crore.

Further, in the open market, Plenty Private Equity Fund I sold 1,076,259 equity shares in PVR at 1,887.04 per share — valuing about 203.09 crore.

Additionally, Gray Birch Investment offloaded 2,206,743 equity shares in the company at 1,871.18 per share. The transaction amounted to 412.92 crore.

With that, Gray Birch has sold its entire holding in the company.

Together, the three investors sold 40,45,501 equity shares in PVR amounting to 759.14 crore.

As of June 31, 2022, Gray Birch held 22,06,743 equity shares or 3.61% in PVR, while Plenty Private Equity FII I held 15,24,998 equity shares or 2.50%, and Plenty Private Equity Fund I held 21,52,517 equity shares or 3.52%.

On September 13, the Competition Commission of India (CCI) rejected a complaint against the proposed merger of multiplex chains PVR and INOX Leisure.

On March 27, PVR and Inox Leisure announced a merger to create a multiplex behemoth with a network of over 1,500 screens across India. The merger will be carried in a swap ratio of 3:10 i.e., 3 shares of PVR for 10 shares of Inox.

Should you invest in PVR shares?

Edelweiss in its latest note, said, “We continue to track the merger of PVR and Inox which would yield a lot of synergy benefits. Multiplexes have come together to celebrate National Cinema Day on 16th September (Friday) by offering tickets at just INR75. At present, 4,000-plus screens are about to participate, including PVR and Inox. This can turn out to be a good move by multiplexes to lure consumers back to cinemas. For improvement in the performance of multiplexes, it is important that audiences redevelop the habit of watching movies in cinemas, instead of OTT platforms.”

“Over coming quarters, we would monitor the performance of Hindi movies and any impact of inflation on consumer spends. We continue to remain positive on multiplexes from long term basis; retain ‘BUY’ on our coverage stocks PVR and INOX,” the Edelweiss report said.

In its Q1 review report, ICICI Direct analysts in their report had said, “We continue to believe PVR is a proxy play on urban/semi-urban discretionary spends. We believe that with strong content pipeline recovery trend will continue ahead. We maintain BUY. We assign 15x FY24 EV/EBITDA with a target price of 2300/share.”

According to the ICICI Direct report, the company guided for 125 screens opening FY23, with a capex of ~400 crore, all funded through internal accruals. In Q1, 14 screen have been added and 82 screens are under fit-outs. Majority of screen addition is likely in H2FY23. It also guided that ad revenues would get to pre-Covid run rate in Q3 led by festive recovery. For, FY23 full year, ad revenues will be lower than FY20 (pre-pandemic levels). On the SPH front, the company indicated that SPH to ATP ratio (currently at 54%) will continue to inch up, going ahead. It expects the ATP to remain firm.

In Q1FY23, PVR went back to witnessing profit after reporting losses in the previous few quarters due to the severe impact of covid-induced nationwide lockdowns. Q1 FY23 was the best ever quarter in PVR’s history in terms of Revenue, EBITDA, and PAT. Also, the company recorded the highest ever ATP of 250 for the quarter on the back of global and local tentpoles that resonated with the Indian audience.

During the quarter, PVR posted a profit of 53 crore against a loss of 220 crore in Q1FY22, while revenue scaled up to 1,002 crore versus merely 93 crore in Q1FY22. In Q1, EBITDA came at 362crore.

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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