Stock in Focus: Shares of multiplex chain PVR INOX Limited were under pressure on Tuesday, December 30. The stock fell 2% to close at ₹994.50 after information about pledge of shares at the promoter level came to light. It reached ₹992.70 intraday. This is the sixth consecutive session when PVR INOX stocks closed in the red.
Why did the promoter pledge the shares?
PVR INOX said in a regulatory filing that its promoter Ajay Kumar Bijli has created an encumbrance by pledging a total of 4 lakh equity shares on December 24. This means that the promoter has taken a loan for his personal needs and has pledged some of his shares as security.
Out of total 4 lakh shares, 3,10,407 shares are held as security by Infina Finance Private Limited. The remaining 90,037 shares have been given to HSBC InvestDirect Financial Services India Limited. The company has clarified that this borrowing is not related to the functioning or financial needs of the company, but is completely related to the personal loan of the promoter.
PVR INOX share was already under pressure
This disclosure has come at a time when PVR INOX shares are already performing poorly in the market. The company’s shares have fallen by about 25% in the last one year, which has further increased the concern of investors. The stock has given a negative return of 9.38% in the last one month also. The market cap of the company has also come down to Rs 9.83 thousand crore.
Highest cinema opened in Ladakh
Amidst the weakness in the stock, PVR INOX has also achieved a big achievement. The company has launched India’s highest cinema hall by opening the first multiplex in Ladakh.
This multiplex is located at an altitude of 11,500 feet and is built on Solar Colony, Saboo, Leh-Manali Bypass Road. With this, PVR INOX has officially entered Ladakh.
New multiplex will run on FOCO model
This two-screen multiplex will operate under the Franchise Owned Company Operated (FOCO) model of the company. Both auditoriums are equipped with 2K projection, Dolby 7.1 Surround Sound and next-gen 3D technology.
Ajay Bijli, Managing Director, PVR INOX, said, ‘There are very few places in the world that offer such an extraordinary backdrop as Ladakh. Bringing world-class cinema at an altitude of 11,500 feet shows our commitment to reaching audiences everywhere.
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