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Indian multiplex giant PVR has announced an investment of Rs 350 crores for opening 100 new screens in FY23.
Customer inflow has seen significant improvement as more people flock to the cinemas to enjoy the experience, thereby driving up food and beverage sales, which has made the company optimistic regarding the expansion.
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Nearly 60% of the new screens will be in cities where the company already has its presence while the balance will be in newer cities like Rourkela, Dehradun, Vapi, Chennai, Coimbatore, Thiruvananthapuram, and Ahmedabad.
The expansion will be funded via a combination of cash balances of internal accruals and debt.
"We will invest up to ₹350 crores to open 100 screens in FY23. I see the same trend continuing in the next 2-3 years as well," Gautam Dutta, CEO of PVR, said.
Moreover, the company also announced that the mega-merger with multiplex behemoth Inox, which was announced in March 2022, could close by the end of February 2023, stating that the company was not looking for inorganic growth opportunities. The CCI rejected all complaints against the merger by CUTS, which could mean smooth sailing ahead for the merger.
In the past 2 weeks, the stock has declined over 7.5%. Investors reacted positively to the news as the stock closed at Rs 1,759.95 per share, up 5.6%, breaching the stock's downturn.
Article by Aman Agarwal.
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