PVR rights issue oversubscribed

Shares of multiplex chain operator PVR eased 1.75% to Rs 1,069.50 apiece on NSE following the announcement of rights issue oversubscription.
The rights issue opened on July 17 and closed on July 31.
According to issue subscription data, PVR proposed to issue 38.23 lakh equity shares.
The company’s board had fixed rights issue price at Rs 784 per equity share, including a premium of Rs 774 a share over face value of Rs 10 per share.

PVR received total bids for 47.90 lakh shares by the time of closure of offer on July 31, including non ASBA (Application Supported by Blocked Amount) bids.
Earlier on July 6, the board of the PVR had approved to raise funds worth Rs 300 crore by rights issues through issuance of equity shares of face value of Rs 10 each on rights issue basis.
The company will allot seven fully paid-up equity shares for every 94 equity share held as on the record date, which is July 10, 2020.

If the shareholding of any of the eligible equity shareholders is less than 13 equity shares or not in the multiple of 13 equity shares, the fractional entitlement of such eligible equity shareholders shall be ignored for the computation of the rights entitlement.
The eligible equity shareholders whose fractional entitlements are being ignored will be given preferential consideration for the allotment of one additional rights equity share each if they apply for additional rights
equity shares over and above their rights entitlement.

The ongoing unlocking process in the country has brightened the chances multiplex operators resuming operations soon, helped calm investor nerves.
PVR share price has recovered nearly 50% from its 52-week low hit late March this year.
PVR seems determined to seize the opportunities offered by prevailing situations.
PVR’s financial performance for the fiscal fourth quarter reflected the COVID-19 induced lockdown impact on its operations from non-availability of movie watchers.

The company reported a consolidated net loss of Rs 74.61 crore for the fourth quarter ended March 2020.
Due to the coronavirus outbreak in India, theatres were the first to shut shop and had stopped operations since the second week of March which led to zero box office collections.
This is why PVR’s revenue from operations during the quarter under review stood at Rs 645.13 crore which was was Rs 837.63 crore in the corresponding quarter a year ago.

The company posted a net profit of Rs 46.75 crore in the January-March quarter a year ago.
Beginning March 11, 2020, the company started closing its screens in accordance with the order passed by various regulatory authorities and within a few days most of our cinemas across the country were shut down.
Besides, PVR has taken one-time write off of perishable inventory of Rs 1.83 crore in March 2020, on account of spoilage due to closure of cinemas pursuant to COVID-19.
PVR’s total expenses was at Rs 731.84 crore in fourth quarter of 2019-20 as against Rs 771.27 crore a year ago.
Revenue from movie exhibitions was at Rs 628.88 crore and Rs 29.89 crore from others which includes movie production, distribution and gaming.

Meanwhile, PVR’s results for year ended March 31, 2020, are not comparable with year ended March 31, 2019, ‘on account of acquisition of SPI Cinemas’.
Currently, PVR operates 845 screens in 176 properties across 71 cities.
For the fiscal year 2019-20, PVR’s net profit was at Rs 26.85 crore. It was Rs 189.40 crore in 2018-19.
Its revenue from operations in FY20 was Rs 3,414.44 crore. It stood at Rs 3,085.56 crore in FY19.

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