The Hindu Business Line : Inox to invest Rs 110 cr for setting up new multiplexes

At present, the Inox chain comprises eight multiplexes with a total of 32 screens that are spread across seven cities. These include Mumbai, Pune, Vadodara, Goa, Jaipur, Bangalore and Kolkata.

According to Mr Manoj Bhatia, Chief Executive Officer, Inox Leisure, the new cities where the company's multiplexes would be operational were Chennai, Hyderabad, Visakhapatnam, Raipur and Darjeeling, among others. The company had recently signed a memorandum of understanding with the Pantaloon Group of companies whereby Inox Leisure, in its capacity as a multiplex operator, would have the first right of refusal to set up operations in any real estate that is developed or managed by the Pantaloon Group.

Mr Bhatia said the company had embarked upon film distribution in four territories, namely, Bengal, Mumbai, Mysore and Rajasthan. While initially it would be engaged in the distribution of Hindi films, distribution of Hollywood films would be looked into at a later date.

According to him, the company had acquired the distribution rights for Hindi films like Garam Masala, Ek Khiladi Ek Hasina, Rang de Basanti, Apharan, etc. On December 9, it would release the Amitabh Bachchan-starrer Ek Ajnabee while Mahesh Bhatt's Kalyug would be released a few weeks down the line. "Our distribution business is at a nascent stage and we are taking one step at a time", Mr Bhatia said.

To fund its expansion plans, Inox Leisure has proposed to enter the capital market with an offer for 1.65-crore equity shares of Rs 10 each for cash at a premium to be decided through the book building process. The draft red herring prospectus has been filed with the Securities and Exchange Board of India.

The offer consists of a fresh issue of 1.2-crore equity shares - of which 2-lakh shares would be reserved for allotment to the company's employees — and an offer for sale of 45-lakh equity shares of Rs 10 each by Gujarat Fluorochemicals.

The net issue to the public, exclusive of the reservation for employees, would be 1.63-crore equity shares. This would constitute 27.17 per cent of the fully-diluted, post-issue paid-up equity capital of the company.

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