Multiples Alternate Asset Management (Multiples PE) along with existing co-investors Canadian and Dutch pension funds besides UK’s CDC has invested more to pick an additional 2.6 per cent stake in India’s largest multiplex chain operator PVR Ltd, as per a stock market disclosure.
As of December 31, 2015, Multiples PE along with two investment entities co-owned by Canada Pension Plan Investment Board (CPPIB), Dutch pension fund manager PGGM and CDC held 19.13 per cent stake in PVR. Half of this was held by Multiples PE.
In June last year, these investors had agreed to invest Rs 350 crore ($54.8 million) in the multiplex chain operator through a preferential allotment.
These four, through three investment vehicles, have put an estimated Rs 85 crore (about $12.3 million) more in PVR through open market transactions, as per VCCircle estimates.
The investors have picked more shares of the firm as its price has declined in line with broader market sell-off.
Multiples PE had originally invested Rs 153 crore in 2012 to pick 15.8 per cent in PVR. It had co-invested with another existing PE investor L Capital, which put in Rs 82.3 crore, to back PVR’s acquisition of Cinemax. It had previously part exited the investment.
Soon after the investment announcement by a CPPIB-led consortium, L Capital had exited the firm.
New Delhi-based PVR operates multiplexes under the brand name PVR Cinemas. It is also engaged in film production, co-production and distribution of Indian and international film business besides operating bowling and gaming zones.
Last year in June, it received its board’s approval to acquire the cinema exhibition business of realtor DLF Ltd for Rs 500 crore ($78.1 million) on a slump sale basis to strengthen its presence in Delhi NCR.
As of December 2015, PVR had a presence in 44 cities with 491 screens far ahead of Inox and Carnival Cinemas in the multiplex business.
PVR’s share price rose marginally to close at Rs 680.65 each, up 4.04 per cent on BSE in a flat Mumbai market on Friday.