Shares of multiplex chain PVR rose as high as eight per cent to hit a 52-week high on the Bombay Stock Exchange (BSE) on Friday over reports that China's Dalian Wanda Group has evinced interest in picking up stake in the company.
The PVR stock, which closed at Rs. 1,183.15 on Thursday, gained 8.20 per cent to hit a 52-week high of Rs. 1,280.20, but later shed losses and was trading at Rs. 1,251.30, up 5.76 per cent, at around 12.40 p.m. The stock's 52-week low is Rs. 646.
The BSE has sought clarification over the media report from the company. "The Exchange has sought clarification from PVR Ltd on September 02, 2016, with reference to news appeared in Economic Times dated September 02, 2016 stating "Wanda Eyes India Premiere Via PVR Buy," the exchange said on Friday.
PVR currently operates 557 screens at 121 properties in 48 Indian cities, after including its latest, six-screen multiplex launched at Xperia Mall in Mumbai.
The Dalian Wanda Group, which has interests in commercial properties, culture, and finance, claims to be the world's largest cinema operator spanning 500 cinemas.
PVR's promoters including Chairman and Managing Director Ajay Bijli hold 25.26 per cent stake in the company.
For the quarter ended June 30, 2016, the company's net profit declined 1.60 per cent to Rs. 42.81 crore, while income rose 17.3 per cent to Rs. 570 crore.
For the financial year 2015-16, the company earned net profit of Rs. 119 crore on revenues of Rs. 1,897 crore.
