PVR Raises Rs 300 Cr Via Subscription Of Shares

PVR Cinemas releases a hit, as it raises ₹300 Cr to tide over the liquidity crisis faced due to #covid19

PVR’s rights issue, which opened for subscription between July 17-31, received an application for 85.29L shares (worth ₹672 Cr) against issue size of 38.23L #shares

This PVR rights issue is one of the most successful in the past 15 yrs in India as it was oversubscribed by 2.24 times!

At a time when cinemas across the country are closed, this is a landmark in media & entertainment in #India

CFO Nitin Sood says #business would pick up post Diwali & FY21 would be as good as FY20. “FY20 was one of our best ever fiscal with a cash EBITDA of ₹700 Cr”, he added

With no possible alternatives like for hotels, which offer staycations & take-out dining, PVR has suffered low #revenues

~Expected to report near-zero revenues in June quarter

Q4’20:
•Consolidated net loss: ₹74.61 Cr
•Revenue from operations: ₹645.13 Cr

Q4’19:
•Net profit: ₹46.75 Cr
•Revenue from operations: ₹837.63 Cr

Only 5-7% of small budget films made at a cost of ₹10-15 Cr earn ₹50 Cr revenues at theatres which leads a producer do go for an #OTT deal

Do you think the future lies with OTT as producers get to earn more than their budget along with extra 10-15% ROI, without a theatrical release?

By: Radhika