Shares of PVR and Inox Leisure surged nearly 5 per cent in Monday’s trade after Brahmastra posted a higher-than-expected box office collection over the weekend. Amid strong occupancy and hopes of reviving Bollywood, Inox’s share price jumped umped a little over five per cent to Rs 521 per share in BSE intraday trade on the BSE.
Likewise, shares of PVR rose around four and a half per cent to Rs 1917 per share on the BSE as the Hindi version of Brahmastra box office collection stood at around Rs 35 crore on an opening day. It is estimated that the weekend collection would be around Rs 100 crore. This comes at the back of the Ranbir Kapoor starrer film crossing Rs 200-crore mark worldwide over the weekend and had crossed the Rs 150 crore mark in gross box office collection worldwide in the first two days of its release.
Ahead of the release of the movie, starring Ranbir Kapoor and Alia Bhatt, both the stocks had rallied up to 4 per cent in a week. However, the stocks had fallen sharply and wiped out about Rs 800 crore worth wealth of PVR, Inox Investors.
Released on September 9, the first installment of the big-budget fantasy adventure epic Brahmastra starring Ranbir Kapoor, Alia Bhatt, and Amitabh Bachchan collected Rs 75 crore on its opening day. Directed by Ayan Mukerji, the film is reportedly mounted on a massive budget of over Rs 400 crore.
Prabhudas Lilladher Pvt. Ltd., last week, picked PVR as their medium term technical pick. In a note, the brokerage said: “The stock has overall maintained an uptrend indicated by the ascending channel pattern on the daily chart recently taking support near 1,800 levels and with improving bias has witnessed a decent pullback. The RSI indicator has indicated a trend reversal from the oversold zone and signaled a buy with immense upside potential visible. With the chart looking attractive, we suggest buying and accumulating this stock for an upside target of Rs 2,110 keeping the stop loss of Rs 1,830.”
Apart from this, multiplex operator PVR has convened a meeting of its shareholders as well as creditors on October 11 to seek their approval for the scheme of merger with Inox Leisure, pursuant to the order of the National Company Law Tribunal’s Mumbai Bench.
In June this year, both PVR and Inox Leisure had said they had received clearances for their merger from bourses NSE and BSE.
In March, PVR and Inox Leisure announced the merger to create the largest multiplex chain in the country with a network of more than 1,500 screens to unlock the opportunities in tier III, IV and V cities, besides in the developed markets. The combined entity will be named PVR INOX Ltd with the branding of existing screens to continue as PVR and INOX.
PVR is a bigger player and it has diversified geographies that will help Inox to grow further. The combined entity would result in material revenue & cost synergies by improving bargaining power with film distributors, real estate developers, ad networks, and ticket aggregators, as per analysts.
Read all the Latest Business News and Breaking News here
Comments
0 comment