Shares of PVR, an Indian multiplex chain operator, have gained about 5 percent in the past two trading days even as Warburg Pincus, a leading global private equity (PE) firm on Wednesday announced buying 14 percent equity stake for Rs 820 crore. The PVR stock was trading at Rs 1,296 on Thursday on the BSE at around 12.58 pm.
The PE firm said that it will be acquiring the stake from affiliates of private equity firm Multiples who will be left with 14 percent equity stake.
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"The Indian multiplex industry is at a cusp of rapid transformation and at the next level of growth driven by consumer demand and experience, convenience and technology. We are delighted to welcome Warburg Pincus as an investor as we continue to accelerate our long term development and expansion," Ajay Bijli, chairman and managing director (MD), PVR, said in a statement issued by Warburg Pincus.
The Bijli family will continue to be the biggest stakeholder.
Ajay Bijli added that the current management of PVR will continue to run the company despite the stake acquisition by Warburg Pincus.
"The Indian film and entertainment market is expanding rapidly and we look forward to supporting Ajay and the entire management team during the next phase of growth," Vishal Mahadevia, Managing Director and Co-Head, Warburg Pincus India Private Ltd said in the statement.
PVR is the largest retail entertainment company in India. It started operations from Delhi in 1997 and currently has 562 screens in 122 properties across 48 cities in India.
