PVR Ltd, the country's largest multiplex chain operator, has received its board approval to raise up to Rs 500 crore ($79 million) through issue of non-convertible debentures (NCDs), according to a stock market disclosure.
It did not say the objective of the proposed fundraising.
This comes at a time when PVR is raising Rs 350 crore by issuing fresh shares to Canadian and Dutch pension fund managers and UK's CDC besides existing PE investor Multiples Alternate Asset Management. Multiples PE had earlier invested Rs 153 crore in 2012 to pick 15.8 per cent in the company. It had co-invested with an existing PE investor L Capital, which put in Rs 82.3 crore, to back PVR’s acquisition of Cinemax.
Earlier Multiples PE had part-exited from the public-listed company.
Multiples PE's fresh investment will help PVR finance its acquisition of the cinema exhibition business of realtor DLF Ltd for Rs 500 crore which it announced early last month.
Simultaneously, the board has also provided green signal for the merger of PVR Leisure Ltd and Lettuce Entertain You Ltd with the company.
Incorporated in 2012, PVR Leisure offers mall entertainment, gaming arena and food courts. In 2012, L Capital Asia I, a fund managed by L Capital Asia LLC, invested Rs 50 crore in the company and early this year, the fund sold its entire stake to PVR.
The shares of PVR, which currently has 467 screens across 105 locations in 43 cities, last traded at Rs 859.70, up 5.36 per cent on BSE in a strong Mumbai market on Wednesday.
