PVR Ltd shares jumped as much as 2.5 percent on Tuesday after private investor Warbug Pincus sold its entire 2.49 percent stake in the multiplex chain in a block deal on Monday.
The data available on BSE showed that Warburg Pincus, through its affiliate Berry Creek Investment Ltd., sold a total of 24.4 lakh shares, translating to 2.49 percent stake in the company, at an average price of Rs 1,559.35 per share. This values the transaction at Rs 380.37 crore.
The buyers included two domestic mutual fund houses – SBI Mutual Fund and ICICI Prudential Mutual Fund – and one foreign fund, Societe Generale-ODI (off-shore derivative instrument).
SBI Mutual Fund purchased nearly 14.7 lakh shares, or 1.5 percent stake, of PVR in the block deal. Meanwhile, ICICI Prudential Mutual Fund bought 6.4 lakh shares, or 0.6 percent stake, in the company.
Societe Generale – ODI acquired 3.3 lakh shares, or 0.3 percent stake of the multiplex chain. All the purchase transactions were executed at an average price of Rs 1,559.35 apiece.
Earlier this month, PVR completed the allotment process of the company’s shares to equity shareholders of erstwhile INOX Leisure Ltd. in accordance with the share exchange ratio provided in the merger scheme.
The merged entity of PVR-INOX said that it expected to reap a combined benefit of Rs 200-225 crore over the next two years.
In the first concall after the merger, PVR-INOX mentioned that the company planned to add 200 screens every year on a base of 1,642 screens. Further, it said that it would take 12-24 months to realise merger synergies.
Keeping in view of the above, brokerage firm Nomura has given a ‘Buy’ rating on PVR shares with a target price at Rs 2,125.
Shares of PVR are trading 1.7 percent higher at Rs 1,572.10.
