PVR drops 3% on likely block deal on the counter

Shares of PVR dropped more than 3 per cent during the early trade on Thursday amid reports of bulk deals on the counter.

According to media reports, four investors - Multiples PE, Grey Birch, Plenty PE and Beerry Invt - were slated to offload a 7.7 per cent stake in the multiplex operator on Thursday.

The data from BSE suggested that 57.87 lakh equity shares worth Rs 1,086.82 crore exchanged hands as of 9.35 am, whereas 28.85 lakh equity shares amounting to Rs 539.67 crore were traded on National Stock Exchange (NSE).

The heavy volumes suggested that the bulk deal has taken place, but ETMarkets.com could not independently ascertain the identity of the buyers and sellers by the time of writing this report.

Following heavy volumes, shares of PVR tanked more than 3 per cent to Rs 1,866 before recovering to Rs 1,869.60. The scrip had settled at Rs 1,929.45 on Wednesday.

The reports suggested that the selling shareholders would offer 47 lakh shares of PVR in the range of Rs 1,852-1,929 apiece. Kotak Securities is reported to be the lead manager for the issue.

Shares of PVR have jumped about 40 per cent in 2022 so far, whereas the stock has gained about 12 per cent in the last six months. The company was under severe pressure amid Covid-led restrictions.

PVR has been in focus since the release of the mega-budget movie 'Brahmastra' and the dismissal of a plea by CCI against its proposed merger with Inox Leisure.

There are no big roadblocks, potentially CCI threat is gone so post shareholders' approval, it will move swiftly but timeliness will be subject to NCLT order, said Karan Taurani of Elara Capital, who has a target price of Rs 2,600 on the stock.

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