- PVR Cinemas raises Rs 800 crore from investors via Qualified Institutional Placement (QIP).
- The company has issued over 5.5+ million equity shares to eligible institutional buyers (QIB).
- In August 2020, PVR Ltd. had raised Rs 300 crore in the post IPO equity round.
India’s leading cinema operator PVR Cinemas (PVR Ltd.) has raised Rs 800 crore (or about $109 million) from a chunk of investors via Qualified Institutional Placement (QIP).
The QIP was launched on January 27 and got closed on February 1, 2020. With this fundraise, The company has issued over 55.55 lakh equity shares to eligible institutional buyers (QIB) at Rs 1,440 per equity share, including a premium of Rs 1,430 aggregating to Rs 800 crore.
Due to the COVID-19 pandemic hit on the company’s growth, It aims to utilize the raised capital in strengthening the financial health of the company and push towards the business recovery.
Additionally, the company will also utilize the funding to reduce its debt, meeting ongoing expenditure, corporate expenditure, operating cost, funding suitable organic and inorganic growth opportunities, as well as meeting long-short term working capital requirements goals.
“The fundraise committee of the company… approved the issue and allotment of 55,55,555 equity shares to eligible QIBs at the issue price of Rs 1,440 per equity share, aggregating to approx Rs 800 crore,” according to the company’s regulatory filing data.
This is the second time the company raised funding through rights issue after the COVID-19 pandemic. In August 2020, The company had raised Rs 300 crore from existing shareholders through a rights issue.
Last month, PVR reported a consolidated net loss of Rs 49 crore for the quarter ended December 31, 2020, against a profit of Rs 36.26 crore in the corresponding quarter a year ago. moneycontrol reported.