Inox Leisure raises Rs 250 crore via QIP

MUMBAI: At a time when the cinema screens across the country have just started opening after being closed for over seven months, India’s second largest multiplex chain Inox Leisure has raised Rs 250 crore through a qualified institutional placement (QIP), which the company said was oversubscribed by 3.5 times.

Inox allocated 9.8 million shares to eligible institutional buyers at Rs 255 per share.

“The stupendous response to our QIP endorses the faith our investors have in the future of our business model and the strength of the management team,” said Siddharth Jain, director, INOX Group. “We are delighted with the participation and support of high quality investors, which will fuel the journey of INOX 2.0 in the future. I extend my deepest gratitude towards our investors for the trust they have bestowed upon us.”

Closed on November 12th, the QIP saw subscription from marquee global and Indian institutional investors, including Abu Dhabi Investment Authority, Eastspring Investments, and mutual fund houses like ICICI Prudential, Birla Mutual Fund, Nippon India Mutual Fund, DSP Mutual Fund and Sundaram Mutual Fund.

The Issue allocation is approximately 69% and 31% to Indian and foreign investors, respectively.

The funds raised through the QIP would be utilised by Inox to meet capital expenditure requirements for on-going and future projects, to sustain growth in the business, for business expansion and to improve the financial leveraging strength of the company.

The funds raised will also be invested towards working capital requirements and debt repayments including repayment of any existing or future debt incurred for any purpose including for paying off any liability, for investments in subsidiary companies as well as for general corporate purposes, including but not limited to pursuing new business opportunities, acquisitions, alliances etc.

At present, Inox operates 147 multiplexes with 626 screens in 68 Indian cities.

ICICI Securities and IIFL Securities were lead managers to the issue, while Khaitan & Co and Squire Patton Boggs Singapore acted as the Indian and international legal counsels, respectively.

In August, PVR had completed its Rs 300 crore rights issue, which was oversubscribed by 2.24 times.

The fund raised by the two leading multiplexes shows the confidence the shareholders have in the sector, experts feel.