Key Points:
– Inox Leisure Ltd is preparing to raise as much as ₹250 crore through a qualified institutional placement, hoping to attract investor attention.
– The fresh capital will be used to strengthen Inox’s financial position by repaying existing loans, funding capex etc, Mint reported.
– Indian government has finally reopened the Cinemas in India from October 15.
Inox Leisure Ltd. is India’s second-largest multiplex operator. It is said that the operator is preparing to raise as much as ₹250 crore through a trained institutional placement in order to attract investors as the movie theatres are set to reopen after a seven-month lockdown.
Citing sources familiar with the matter, Mint reported that Inox is working with ICICI Securities, IIFL.
A person known to the matter, requested anonymity while saying to Mint that Inox had done a block deal of ₹100 crore by selling Inox shares owned by their treasury during the lockdown. The investors gave this a green flag. Thus, in relevant to the past activities of the share sales, Inox looks forward to see a better response from the investors for the same.
The money that will be earned through this fundraising is said to be used to pay existing loans and will be spent on the under-constructed properties.
The centre had left it to the state administration to take a call on reopening of theatres and issue-specific guidelines in addition to Centre’s own SOPs.
After a seven month of closure, the Indian government has finally reopened the Cinemas in India from October 15. The halls are under strict SOPs due to the Covid-19 spread. With only 50% mass to be allowed in the theatre, only distributing packed snacks is another in the norms in order to curb the spread of the virus.
Inox shares have risen by 60% to ₹264.25 apiece.
West Bengal, Gujarat, Karnataka, Uttar Pradesh, Assam, Andhra Pradesh, Haryana, Madhya Pradesh, Delhi and Goa are the states where Inox that it has begun the process of reopening its properties, Inox has around 626 screens in 68 cities of India.
The 20% contributor to the Box Office collection for both PVR and Inox, the state of Maharashtra is yet to take a decision on the reopening of the movies theatres as the state has been severely hit by the Covid-19 Pandemic.
