Now Reading: PVR Inox board to consider share buyback on August 31
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PVR Inox board to consider share buyback on August 31
Multiplex chain PVR Inox will hold a board meeting on August 31 to consider a proposal to buy back its equity shares. The company disclosed the plan in a regulatory filing on…
Multiplex chain PVR Inox will hold a board meeting on August 31 to consider a proposal to buy back its equity shares. The company disclosed the plan in a regulatory filing on Tuesday, stating the board will discuss the buyback of shares with a face value of Rs 10 each, along with related matters. No details on the number of shares or the buyback price have been announced yet. The outcome will be communicated to stock exchanges after the meeting, as required under SEBI's listing rules.
PVR Inox shares were trading at Rs 1,230.40 on the BSE on Tuesday afternoon, down 0.07 per cent from the previous close. The stock touched a 52-week high of Rs 1,283 on August 25, and a low of Rs 900.05 on March 2. As of June 30, the company operated 1,779 screens across 113 cities in India and Sri Lanka. PVR Inox is India's largest multiplex chain, formed through the merger of PVR Ltd and Inox Leisure in 2023.
Indian Opinion Analysis
The buyback route allows PVR Inox to return surplus cash without the regular tax burden of dividends, since buybacks were taxed at the shareholder level until a rule change brought them on par with dividends. The company's current share price of ₹1,230 is well above its March low of ₹900 but still below the peak of ₹1,283 hit earlier this week. As India's largest multiplex chain with 1,779 screens, PVR Inox faces pressure from rising competition from streaming platforms and the need to maintain occupancy rates. The board will decide the buyback size and price on August 31. Under SEBI rules, a buyback cannot exceed 25% of paid-up capital and free reserves in any financial year, capping the potential outlay that shareholders should watch for.
Source: thehindubusinessline.com
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