INOX: PVR-INOX merger gets clearance from BSE and NSE

Multiplex Operators PVR and on Tuesday said it had received approval for their merger from the NSE and BSE stock exchanges. “The company received a ‘no adverse notice’ letter dated 20 June 2022 and a ‘no objection’ letter dated 21 June 2022 from National Stock Exchange of India Ltd. respectively with respect to the merger scheme,” the PVR said in a statement.

This has also been confirmed INOX through identical normative documentation.

The certificate of no objection from the exchange is a mandatory step to obtain permission from the exchange. National Companies Tribunal and other regulators for any merger scheme.

On March 27 this year, PVR and Leisure announced a merger to create the largest multiplex network in the country with a network of more than 1,500 halls to open opportunities in Tier III, IV and V cities, in addition to developed markets.

The combined organization will be called OOO PVR INOX while retaining the branding of existing screens as PVR and INOX respectively. The new cinemas opened after the merger will be called PVR INOX, the companies announced on March 27.

Under the agreement, INOX will merge with PVR at a share swap ratio of 3 PVR shares for every 10 INOX shares.

Following the merger, the INOX promoters will become co-promoters in the combined company along with the existing PVR promoters.

The PVR promoters will own 10.62% of the shares, and the INOX promoters will own 16.66% of the shares of the combined company.