Shares of PVR Ltd. and INOX Leisure hit their 52-week high and surged up to 18% on Monday intra-day trade on BSE. The surge came after the Maharashtra government announced the reopening of multiplexes and cinema halls in the state from October 22.

After the announcement, shares of Inox Leisure rose by 17.83% to hit a high of Rs 412.20 on BSE. PVR rose by 10% to hit a high of Rs 1,662.20.

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At 09:45 am; both these stocks erased partial gains, with the Inox up 10.5% at Rs 387 and PVR traded 6% higher at Rs 1,599 on the BSE. In comparison, the S&P BSE Sensex was up 0.50% at 60,348.

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Maharashtra is the largest market for multiplex chains and contributes around 25 to 30% of the total revenue. PVR runs 151 screens in the state, INOX operates 133.

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Theatre and multiplexes have been closed since April this year across the country.  Maharashtra government has allowed the theatres to reopen with the condition to follow all COVID-19 protocols.

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Maharashtra Chief Minister Uddhav Thackeray on Saturday said cinema halls in the state will be permitted to operate from October 22 on the condition that they follow all the protocols required to prevent the spread of coronavirus.

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Two weeks before, the Multiplex Association of India (MAI) and the leading cinema chains, PVR and INOX, urged the Maharashtra government to reopen theatres in the state on an “urgent basis”, claiming that the industry has suffered losses of around Rs 4,800 crore.

Mall operator Phoenix Mills Ltd. shares also jumped as much as 9.1% to a record high of Rs 1,030 apiece after the announcement.