PVR and Inox Leisure’s share prices surged 5% and 16% in early trade, respectively, a day after the announcement of their merger to form a cinema behemoth with more than 1,500 screens.

PVR hit a 52-week high of Rs 2,010.35 and INOX Leisure touched a 52-week high of Rs 563.60.

Also Read| Banking services may be disrupted due to nationwide strike on March 28-29

PVR was trading at Rs 1,931.05, up Rs 103.45 or 5.66%, while Inox Leisure was trading at Rs 545.00, up Rs 75.30 or 16.03%, on the BSE at 09:17 hrs.

Top multiplex operators PVR and Inox announced their merger yesterday after their boards approved an all-stock deal subject to the approval of shareholders, stock exchanges, market regulator, and others.

Also Read| Asia stocks dip, oil prices fall on Shanghai shutdown

Inox shareholders will get PVR shares in exchange for INOX shares at the agreed swap ratio.

According to an Inox press release, shareholders of Inox who hold 10 equity shares of Rs 10 each fully paid up of the company as of the record date would get three equity shares of Rs 10 each fully paid up of PVR.

Also Read| Fuel prices: Petrol priced at Rs 99.41, diesel Rs 90.77 in Delhi on March 28, 2022

Following the merger, PVR promoters will hold 10.62% of the merged business, while Inox promoters would own 16.66%.

It was also determined that Ajay Bijli would be the merged entity’s managing director, while Sanjeev Kumar would be the executive director.

Also Read| Trending Stocks: Reliance, Vedanta, PVR, M&M, Emami and others in news today

Pavan Kumar Jain, Chairman of Inox Group, will serve as non-executive chairman of the board, while Siddharth Jain will serve as a non-executive non-independent director in the merged business, the two companies announced in an exchange filing.

PVR Ltd reported a narrowing of its consolidated loss after tax at Rs 10.2 crore for the third quarter ended December 2021. The company had posted a consolidated loss after tax of Rs 49.21 crore in the same period last fiscal, PVR Ltd said in a regulatory filing. Consolidated total income during the period under review stood at Rs 709.71 crore as against Rs 320.13 crore in the year-ago quarter, it added.

Also Read| Trade Setup: Top 15 things to know before market opens on March 28, 2022

Inox Leisure Ltd reported its consolidated net loss at Rs 1.32 crore for the third quarter ended December 2021 as the film exhibition business witnessed recovery from Covid restrictions during the period. The company had posted a net loss of Rs 102.50 crore in the October-December quarter a year ago, said Inox Leisure in a BSE filing. Its revenue from operations was at Rs 296.47 crore, up several folds during the quarter under review as against Rs 14.88 crore in the corresponding quarter last fiscal, when the screening business was almost closed.