New Delhi: PVR on Monday 1st February 2021 successfully completed its equity fund raising of INR 800 crores through the Qualified Institutional Placement. The issue received robust response from investors with overall book being over-subscribed 6.3 times, witnessing strong participation from both marquee domestic and foreign institutional investors. This fund raise has followed a very successful Rights Issue of INR 300 crores which the company had completed in August 2020, which saw an over-subscription of 2.24times.
The fund raise was priced at Rs. 1440 per share, which represented a discount of 2.59% on the closing price of the date of launch of transaction i.e. 27th January 2021. The Company was able to build significant investor interest for its equity offering despite negative impact of COVID 19 pandemic on the business and extremely volatile equity markets in the week leading upto the transaction announcement with broader markets correcting approx. 6%.
The above fund raise would significantly strengthen the balance sheet of the company and provide sufficient impetus to the business recovery which is currently underway. The company is expected to utilise these funds for reduction of debt, meeting ongoing capital expenditure, meeting short term & long term working capital requirements and other general corporate purposes including operating expenses.