PVR scouts to fetch RS 250 cr funding to back its various activities

PVR Ltd., a multiplex chain, is now planning to fish out Rs 250 crore funding through Non-Convertible Debentures (NCD). The multiplex is aiming to utilize this amount to further back its various activities including acquisitions.

As per the latest development, the firm will put forward the new idea across its board members for their approval in an annual general meeting which is scheduled on 29 September, 2016.

The recent filing of PVR at Bombay Stock Exchange (BSE) states that "Based on the needs of funds, the company may issue fresh non-convertible debentures (NCDs) for a sum not exceeding Rs 250 crore for inorganic growth opportunities, for capital expenditures, to refinance the high cost of borrowings and for corporate and all other business needs of the company. Raising of funds through the issue of NCDs will result in the borrowed money exceeding the aggregate of the company's paid up share capital and free reserve.

In order to expedite the raising of the funds, the company is seeking approval of the members to authorise its board for the issue and allotment of the NCDs, statement added.

In its last acquisition, PVR had managed to crack a much talked about deal of acquisition of DT Cinemas and hence, acquired 32 screens of DT cinemas at a revised consideration of Rs 433 crore. Due to the directions of the Competition Commission, it excluded certain assets from the deal to address anti-competitive concerns.

In June last year, PVR had announced the acquisition of DT Cinemas for Rs 500 crore after aborting from a similar deal in February 2010.