India’s largest multiplex chain operator PVR Ltd on Wednesday launched a qualified institutional placement (QIP) offering which aims to raise as much as ₹800 crores by selling shares to institutional investors.
This is the second equity fundraise by the multiplex operator since the COVID-19 pandemic shut down movie theatres for more than six months.
“Our company proposes to utilize the net proceeds for (i) pre-payment and/or repayment of outstanding borrowings along with interest, (ii) ongoing capital expenditure, (iii) funding suitable organic and inorganic growth opportunities, including by way of investment in our subsidiaries, (iv) meeting short term & long term working capital requirements,” said the PVR.
“The Fund Raise Committee of the company has approved the preliminary placement document in connection with the QIP and authorised the opening of QIP on January 27,” said PVR in its BSE filing.
The floor price for the issue has been fixed at Rs 1,495.93 per equity share, which is 1.1% higher to the closing price of January 27. PVR shares gained 1.19% on January 27 to close at Rs 1,480.05 on the BSE.
The company said the Fund Raise Committee would consider and determine the issue price of equity shares to be issued pursuant to the QIP including any discount on the floor price on February 1.
The Board of Directors of the company had approved the fundraising on December 18, 2020, while the shareholders by way of a special resolution passed the same through postal ballot on January 19, 2021.