PVR Inox has approved a ₹300 crore buyback of 20.69 lakh shares at ₹1,450 each, marking its first such move since the merger, amid signs of improved operational performance and market confidence.
PVR Inox has approved a buyback of up to 20.69 lakh fully paid equity shares at ₹1,450 each, a transaction worth as much as ₹300 crore, in what the company says is a cash offer to shareholders. The tender offer will be routed through the stock exchange mechanism under Securities and Exchange Board of India rules, and September 4 has been set as the record date for determining who is eligible to take part.
According to the stock exchange filing, the buyback amount excludes related costs such as brokerage, taxes, filing fees and legal or advisory expenses. The board also said it may, shortly before the record date, raise the buyback price and trim the number of shares to be repurchased if needed to keep the total size unchanged. Murlee Manohar Jain has been named compliance officer for the process, while DAM Capital Advisors will manage the transaction.
The company also noted that the promoter and promoter group intend to participate in the offer. That detail matters because buybacks can be used to return cash to shareholders while also signalling management’s confidence in the company’s prospects. Market reports said this is PVR Inox’s first buyback since its merger, and some analysts have framed the move as an attempt to support the share price and fine-tune the company’s capital structure.
The announcement came as the cinema chain’s operating performance has improved. Moneycontrol and other market reports said PVR Inox posted a consolidated net profit of ₹56.50 crore in the June quarter, a sharp reversal from a loss in the same period a year earlier. Even so, the share price ended the session 1.22% lower at ₹1,206 on the National Stock Exchange.
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