Multiplex Firms PVR, INOX Rally 10%-20% On Merger Deal

Shares of India's PVR and INOX Leisure surged 10%-20% on Monday after the country's two largest multiplex operators said they would merge to create a theater chain with more than 1,500 screens.

INOX will merge with PVR in an all-stock deal, with shareholders of INOX receiving three shares in PVR for every 10 shares of INOX, the companies said in a regulatory filing on Sunday.

INOX shares surged as much as 20% to hit a record high of 563.6 rupees, while PVR jumped 10% to its highest in more than two years.

PVR and INOX said the merger, which was subject to regulatory approvals, would help both companies improve efficiency, reach newer markets and optimise cost.