Companies

L Capital to pump in Rs 108 cr in PVR

Meenakshi Verma Ambwani New Delhi | Updated on March 12, 2018

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L Capital Eco, a subsidiary of private equity fund L Capital Asia, has signed an agreement to invest about Rs 108 crore in PVR’s cinema exhibition and in-mall entertainment business.

Under this agreement, L Capital will invest Rs 57.7 crore through the preferential allotment route in PVR Ltd for a 10 per cent stake. The PE firm will subscribe to about 28.85 lakh shares in PVR at a price of Rs 200 per share. This is subject to statutory approvals.

L Capital will also make an initial investment of Rs 50.1 crore for a joint venture with PVR to invest in various in-mall entertainment formats, gaming, food and leisure formats.

PVR’s existing investment in PVR bluO Entertainment, its bowling business, will become a part of this new subsidiary. The joint venture will require a nod from the Foreign Investment Promotion Board.

L Capital Asia is the private equity arm of luxury company LVMH.

Mr Ajay Bijli, Chairman and Managing Director of PVR, said in a statement: “This is in line with our vision to evolve into a full-scale lifestyle entertainment company over the next 4-5 years. L Capital has a strong global reach and has already made introductions to multiple international entertainment, leisure and F&B concepts.”

He added that the company expects to be able to bring multiple entertainment concepts to India through this partnership.

>meenakshi.v@thehindu.co.in

Published on August 01, 2012

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