PVR Ltd, country’s largest multiplex chain operator, has received its shareholders approval to raise up to Rs 500 crore ($81.18 million) through qualified institutional placement (QIP), the company said in a stock market disclosure.
The company’s board had approved the proposed QIP two months ago.
The firm did not disclose the reason for the proposed funding but it could be to to retire debt. It has not frozen a timeline to float the issue.
PVR, which counts L Capital and Multiples PE as shareholders, currently operates a cinema circuit comprising 445 screens in 101 cinemas spread across 43 cities in India.
Recently, Multiples PE part exited the investment in PVR by selling a small minority stake in the process in its second successive liquidity event from a portfolio firm.
Early this year, the firm announced to operate a 15-screen multiplex or superplex in an upcoming location in Noida, making it the biggest multiplex in the country.
For the first quarter of FY15, PVR reported revenues of Rs 361.69 crore, increased 8.1 per cent as compare with last fiscal’s Rs 334.45 crore. Its net profit, however, almost halved to Rs 7.6 crore.
Shares of PVR were trading at Rs 704.50 each, up 0.52 per cent on BSE in a strong Mumbai market on Tuesday at 12.47 PM.