Indian film exhibition giant PVR, the largest multiplex network in India, has shown a strong upward movement, climbing around 13% in the past 5 days.
This performance comes after the announcement of PVR and Cinepolis India’s merger. This merger would create a giant entity that would control over 1,200 screens all over the country. This massive entity would be the largest in the country and would control more than double the screens in control of the current second largest: INOX. The merger is likely to be announced at the end of March 2022.
Major brokerages like Sharekhan have set a “Buy” rating for the stock and are expecting prices to go upto Rs 1900 per share. Analysts estimate that a duopoly in the film exhibition industry will emerge as only 2 major players would remain after the merger. The stock currently trades around Rs 1700.
Highlight by Aman Agarwal.