PVR Cinemas to acquire SPI Cinemas

/2 min read

ADVERTISEMENT

Ajay Bijli-led multiplex chain PVR reached an agreement to buy a 71.7% stake for Rs 633 crores in SPI Cinemas in its efforts to increase its presence in the south.
PVR Cinemas to acquire SPI Cinemas
 Credits: Pexels

In a bid to further expand in South India, Ajay Bijli-led multiplex chain PVR Cinemas reached an agreement on Sunday to buy a 71.7% stake for Rs 633 crores in SPI Cinemas. This will bring PVR’s total screen count to 706 screens across 152 properties and 60 cities.

“PVR would acquire 222,711 equity shares of SPI Cinemas, constituting 71.7 % of the paid-up equity share capital of SPI, from existing shareholders for a total consideration of Rs 633 crore,” PVR said in a statement. “It will also issue 1.6 million equity shares of PVR Ltd, constituting approximately 3.3% of the diluted paid-up equity share capital of the company, pursuant to a scheme of amalgamation between SPI and PVR.”

Fortune India Latest Edition is Out Now!
India's Top 100 Billionaires

August 2025

As India continues to be the world’s fastest-growing major economy, Fortune India presents its special issue on the nation’s Top 100 Billionaires. Curated in partnership with Waterfield Advisors, this year’s list reflects a slight decline in the number of dollar billionaires—from 185 to 182—even as the entry threshold for the Top 100 rose to ₹24,283 crore, up from ₹22,739 crore last year. From stalwarts like Mukesh Ambani, Gautam Adani, and the Mistry family, who continue to lead the list, to major gainers such as Sunil Mittal and Kumar Mangalam Birla, the issue goes beyond the numbers to explore the resilience, ambition, and strategic foresight that define India’s wealth creators. Read their compelling stories in the latest issue of Fortune India. On stands now.

Read Now

SPI Cinemas is South India’s leading cinema exhibitor and runs the iconic Sathyam Cinema in Chennai. It also has a network of 76 screens across 10 cities in states like Tamil Nadu, Telangana, Karnataka, Kerala, and Andhra Pradesh. SPI, which boasts a high occupancy rate at 58%, will also help PVR to diversify its box office revenue from regional content from 19% to 22%.

“The acquisition will make PVR the undisputed leader in the South Indian market and provide an attractive platform for us to expand in that geography, which currently is highly underpenetrated in terms of multiplexes,” said Ajay Bijli, chairman and managing director, PVR Cinemas. “This transaction is a significant step in helping us achieve our vision of having 1,000 screens by 2020,” he added.

The transaction is likely to be closed in the next 30 days and the merger process is expected to be completed in the next 9-12 months. Also, the company said that both Kiran M. Reddy and Swaroop Reddy, owners of SPI Cinemas, will continue to remain associated with the business.

PVR reported a 17% increase in its net profit to Rs 52 crore for the quarter ended June 30; its revenue increased 7% to Rs 700 crore from Rs 653 crore a year ago.

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.