NCLT approves PVR-INOX merger

The National Company Law Tribunal (NCLT) on Thursday approved the amalgamation of the country’s top two multiplex chains — PVR Limited and INOX Leisure.

The Mumbai bench of NCLT has cleared the scheme of amalgamation between INOX Leisure (transferor) and PVR (transferee company), PVR said in a regulatory filing.

“NCLT, Mumbai Bench, has allowed the proposed scheme today ie 12th January 2023,” it said.

According to the filing, a copy of the detailed order is awaited and the same shall be disclosed as and when received by the company.

In October 2022, PVR received the nod from its shareholders for the merger with rival INOX Leisure.

Leading bourses NSE and BSE granted their approvals for the merger in June 2022.

In March last year, PVR and INOX Leisure announced the merger.

“We believe, the PVR-INOX (INOL) merger, if it materialises in the near term, may trigger multiple synergies immediately, in the form of advertising revenues and convenience fee for the merged entity, which should directly improve overall profitability,” Elara Capital said in a report.

Other synergies such as reduced rental costs and corporate overheads may also ensue in the medium to long term, it added.