PVR sells 10% stake to PE firm L Capital for Rs 108 cr
Mumbai: Private equity fund L Capital Asia on Wednesday picked 10 percent in the New Delhi-based multiplex chain PVR Cinemas for around Rs 108 crore.
"L Capital Asia, through its subsidiary L Capital Eco, has agreed to invest Rs 57.7 crore under a preferential allotment route in PVR for a 10 percent stake. Under this, L Capital shall subscribe to 28,85,000 equity shares in PVR at a price of Rs 200 per share (at a premium of 21 percent over the closing price of Rs 165.95 per share," PVR said in a release.
The two companies will also enter into joint ventures for investment in various in-mall entertainment, gaming, food and leisure formats, it added.
The joint venture, which is still awaiting FIPB approval, will initially see L Capital investing Rs 50.1 crore into a new subsidiary being set up by PVR, and its existing investment in PVR bluO Entertainment being held through this new subsidiary company, it said.
"The partnership with L Capital will help us build and expand our core cinema exhibition business and expand our in-mall entertainment portfolio. This is in line with our vision to evolve into a full scale lifestyle entertainment company over the next 4-5 years," PVR chairman and managing director Ajay Bijli said.