PVR to raise funds for expansion of exhibition business

MUMBAI: PVR, which is planning to invest a sum of approximately Rs 2.5 – 3 billion (Rs 250 – 300 crores) in the exhibition, film production and distribution businesses, is looking at raising funds towards the latter half of the year.

PVR chief financial officer Nitin Sood informs Businessofcinema.com that in order to fund its expansion plans in the exhibition sector, the company will be looking at raising funds via debt, internal accruals and fresh equity during the later part of the year.

"We have signed up more than 150 screens for development over the next three years. Over the next 12 months we expect to open around 50-60 new screens in markets like Bangalore, Chennai, Ahmedabad, Surat, Allahbad, Raipur etc," Sood informs.

At present, PVR has 26 theatre properties with a total of 108 screens across 13 cities in India.

The company is planning to invest Rs 1 – 1.5 billion (Rs 100 – 150 crores) in the film production and distribution business over next 18 months and another Rs 1 – 1.5 billion in the exhibition business.

The production business of the company will be completely funded via the private equity capital that the company had raised last year to fund its expansion plans.

Sood adds, "The company is reviewing various production opportunities with 8-10 films under discussion currently. We are not in a position to share specific details of these projects as some key projects are at a finalization stage. However, the company expects to release four – five films by next financial year."

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