PVR gains on reports of acquisition plans of DT Cinemas; ends flat

NEW DELHI: PVR Ltd rallied as much as 2.5 per cent in trade on Wednesday after media reports suggested that the Ajay Bijli-controlled PVR Cinemas is set to acquire DT Cinemas, the wholly-owned subsidiary of DLF which owns theatre screens in and around Delhi.

However, the stock ended flat, up 0.94 per cent or Rs 5.45 at Rs 653.7.

The negotiation is in advanced stages and is likely to value the company at about Rs 500 crore, ET reported.

"This would be PVR's second attempt to acquire DT Cinemas after 2009, when it entered into definitive agreement with the DLF Group. That deal called off due some legal issues," added the report.

India currently has 1,700 multiplex screens with PVR leading the market with 454 screens while the second-ranked Inox owns 361 screens.

DT Cinemas currently operates 29 screens in National Capital Region of Delhi and Chandigarh. It will ramp up its operations to 39 screens by 2016.

According to ET report, DT is one of the significant players in the Delhi and NCR with 18 screens in Delhi, eight in Gurgaon and another three in Chandigarh.