The Hindu Business Line : PVR Cinemas to raise Rs 150 cr for expansion

PVR Cinemas plans to raise about Rs 150 crore early next year in the second round of funding and float an IPO later to finance its expansion programme.

PVR Cinemas Managing Director, Mr Ajjay Bijli, told Business Line that the funds would be used for making forays into the B and C class cities. "There is a huge potential in these cities and we hope to capitalise on this," Mr Bijli said.

In March 2003, PVR had raised private equity worth Rs 100 crore. While ICICI Venture invested Rs 38 crore, Rs 40 crore was through debt and the rest through accruals.

Mr Bijli said in the next two years, PVR expects to have 200 screens with each screen expected to cost around Rs 2.5 crore.

By March next year, it will have around 65 screens across the metros.

It has invested around Rs 25 crore in its facility in Bangalore which is its biggest so far in a single location.

The Bangalore multiplex has 11 screens and can seat up to 2,100 people. The tickets range between Rs 60 and Rs 250.

PVR has 25 screens spread across eight locations in Delhi while multiplexes with five screens are under construction in Hyderabad and multiplexes with 13 screens under construction in Mumbai.

PVR has also a distribution arm called PVR Pictures. It has a 50:50 joint venture with producer-director Ram Gopal Verma's Verma Corporation. The venture has exclusive distribution rights in Delhi, Uttar Pradesh and Uttaranchal.

PVR expects to post revenues of around Rs 100 crore during 2004-05, nearly 37 per cent more than 2003-04.

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