Premium film exhibition company PVR on February 1 successfully completed its equity fund raising of Rs 800 crore through the Qualified Institutional Placement (QIP). The issue received robust response from investors with overall book being oversubscribed 6.3 times, witnessing strong participation from both marquee domestic and foreign institutional investors.
The fund raise follows a successful rights issue of Rs 300 crore the company had completed in August 2020, which saw an over-subscription of 2.24 times.
The fund raise was priced at Rs 1,440 per share, which represented a discount of 2.59% on the closing price of the date of launch of transaction, i.e. January 27. The company was able to build significant investor interest for its equity offering despite negative impact of Covid-19 pandemic on the business and extremely volatile equity markets in the week leading upto the transaction announcement with broader markets correcting approximately 6%.
The fund raise would significantly strengthen the balance sheet of the company and provide sufficient impetus to the business recovery which is currently underway. The company is expected to utilise these funds for reduction of debt, meeting ongoing capital expenditure, meeting short term and long-term working capital requirements and other general corporate purposes, including operating expenses.