PVR, INOX Will Merge To Create Rs 16,000 Crore Worth Cinema Behemoth: India’s Largest With 1567 Screens!

The two largest movie theater chains in the country, PVR Cinemas and INOX Leisure announced that they will merge into a single entity through an all-stock deal on March 27, 2022.

The merger will be done to build a resilient entity, strong enough to turnaround the stagnancy and losses that affected the movie theater industry during the Covid-19 pandemic.

Another blow to the success of this industry at present, is the wide adoption and a sharp shift in content viewers to the over-the-top or OTT platforms like Netflix, Voot, and more.

Here’s everything you need to know about the merger between INOX and PVR.

INOX & PVR Merger

PVR houses the highest number of theaters in the country with 860 screens, while Inox holds the second largest figure at nearly 667 screens, and another theater body Cinepolis holds 400 screens in the country.

The merger announced between PVR and INOX on Sunday will form one merged entity called the ‘PVR INOX Ltd’, with the existing multiplexes under PVR and INOX functioning as usual, under their own brand names.

However, any new multiplex built after the merger will be under the brand ‘PVR INOX’.

The merged entity will have a large market valuation of over Rs 16,000, and will operate 1,546 screens across 160 properties in 72 cities around India.

As part of the merger, every shareholder of INOX will receive 3 shares of PVR against every 10 stocks held.

The boards of both the companies approved the merger deal on Sunday.

The chairman and managing director of PVR, Ajay Bijli will head the new merged entity as the managing director, while Sanjeev Bijli will be an executive director of the company.

“This is a momentous occasion that brings together two companies with significantly complementary strengths. The partnership of these two brands will put consumer at the centre of its vision and deliver an unparalleled movie going experience to them,” said Ajay Bijli.

“As we head into the industry’s revival amidst headwinds, this decisive partnership would bring in enhanced productivity through scale a deeper reach in newer markets and numerous cost optimisation opportunities and continue to delight cinema fans with world-class experiences and landmark Innovations,’’ said Siddharth Jain, director of INOX Leisure.