Warburg’s trust invested in PVR

The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Sourav Kumar, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur

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From a mere start as a single screen theater in South Delhi in 1978, PVR has tread a long journey  making its way to the exalting segment of multiplexes. From its humble beginning, to getting a national footprint, PVR has augmented with many acquisitions as well as Greenfield assets.

Witnessing the assurance of a prospering future ahead, Private equity giant Warburg Pincus has acquired around 14% stake in PVR for around Rs 820 crore. The stake acquisition concluded valuing India’s largest film and retail entertainment company at around Rs 6,000 Crore. The stake is being acquired from affiliates of private equity firm Renuka Ramnath Founded Multiples, which will remain as a long term investor with a 14% equity stake. Ahead of which it stands evident that the business will still be driven by current promoters holding the largest chunk of stake with over 25% holding.

The acquiring stint has been greeted with warm welcome, keeping in view the fact that Indian multiplex industry is at a cusp of thriving possibilities, of growth accompanied with driving forces derived from consumer demand and experience, convenience and technology. Also, the firm’s Global Network and experience will be invaluable for it’s way forward.

Of all the seemingly promising factors, it seems that Warburg Pincus counts the most upon the PVR authority’s passion and commitment to the business.

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