PVR-INOX merged entity will take this long to realise merger synergies

In the short term company will focus in on platform integration and the long term goals include to drive synergies from Ad revenue, F&B revenue and operational costs

Further the merged entity targets to derive 5 percent of cinema SPH (spends per head) from food delivery business. With the leverage of scale and standardisation of products PVR-INOX expects the cost per screen to reduce by 10-15 percent.

Brokerage firm Nomura has a Buy rating on the shares of PVR with the target price at Rs 2125.

As per the brokerage firm addition of 44 percent new screen additions in metro cities, focus on increasing penetration in southern parts of the country

and the work towards international distribution of Indian movies in an efficient manner will aid the merged entity.

Leadership across key operating metrics with experienced promoters, key managerial personnel and senior management teams with an established track record will add further value. Reiterate positive stance on multiplexes for medium to long-term, Nomura said in a Note.