ICRA has placed the ‘A1+’ rating assigned to Commercial Paper Programme (CPP) of PVR on rating watch with developing implications. The rated amount is enhanced from Rs 20 crore to Rs 40 crore.
The rating has been placed under watch following PVR’s acquisition of 69.27% stake from the promoters of Cinemax India (CIL), for a sum of Rs 395 crore. Further, it shall be making an open offer to acquire 26% stake in CIL. Including the open offer, the total deal size is expected to be Rs 543 crore. PVR plans to fund the same through private equity of Rs 235 crore, additional equity from its promoters of Rs 25 crore, debt of Rs 240 crore and balance through internal accruals. The acquisition will be done through PVR’s wholly owned subsidiary Cine Hospitality. While the equity is being infused at PVR level, majority of the debt will be availed at subsidiary level.
PVR (PVR) is a leading ‘Film Exhibition’ company in India. It pioneered the multiplex industry in the country by establishing the first multiplex cinema (4 screens) in 1997 and the largest (11-screen) multiplex cinema in the country in 2004.
| Company Name | CMP |
|---|---|
| PVR | 938.05 |
| Saregama India | 344.55 |
| Shemaroo Entertain. | 105.35 |
| Balaji Telefilms | 94.39 |
| UFO Moviez | 72.06 |
| View more.. | |
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