Why are PVR-Inox shares down 8% today, marking the sharpest intraday fall in six months?

The shares of India’s largest multiplex chain, PVR-Inox, on Monday morning declined by at least 8.2% while touching an intraday low of ₹1,126 before recovering to trade at ₹1,203 at the Bombay Stock Exchange (BSE). This witnessed the sharpest intraday fall of the company in the last six months.

The shares of the cinema company opened at ₹1,023 compared to the previous close of ₹1,227, marking a decline of 2%. At 11:20 am today, the shares of the company were trading at ₹1,134, down by 7.58%, while the volume-weighted average price (VWAP) stood at ₹1,145.

Why did PVR-Inox's shares decline by 8% today?

Notably, the decline in the shares is attributed to the sell-off following the passing of the buy-back record date of the company, which was September 4.

Investors who bought the shares ahead of the record date to participate in the buyback are now exiting their positions, a trend commonly seen in stocks after the buyback eligibility date.

This was the first-ever buy-back in the company's history since the PVR-Inox merger happened in 2023.

With this buy-back, the company was targeting to purchase up to 20,68,965 equity shares (~20.69 lakh shares) at the price of ₹1,450 per share, for an aggregate amount of up to ₹300 crore, payable entirely in cash.

PVR Inox’s board approved the share buyback on August 31, 2026. The buyback was carried out through the tender offer route using the stock exchange mechanism and accounted for 2.11% of the company’s total paid-up equity capital.

JM Financial raises target price, retains ‘ADD’ rating

Brokerage firm JM Financial retained its ‘ADD’ rating on the stock while raising its 12-month target price to ₹1,270 from ₹1,130. It said the buyback reflects management’s confidence in the company’s balance sheet. JM Financial also raised the stock’s target EV/EBITDA multiple to 9x from 8x, citing a strong content pipeline and a significant improvement in the company’s cash position. PVR Inox had net cash of ₹807 million at the end of June 2026, compared with net debt of ₹1,619 million at the end of March 2026.