Warburg Pincus buys 14% stake in PVR for Rs. 820 cr

The Dollar Business Bureau

American private equity company Warburg Pincus said on Wednesday that it has acquired about 14% stake in the Indian multiplex chain PVR for around Rs.820 crore.

“Affiliates of Warburg Pincus have acquired an equity stake of approximately 14% in PVR, India’s largest film and retail entertainment company for approximately Rs.820 crore,” the company said in a statement.

The stake is being bought from the affiliates of private equity company Multiples, who will continue to be a long-term investor with equity stake of 14% and the present promoters who will remain to lead the business and continue to be the largest stakeholders with a shareholding more than 20%, it added.

Ajay Bijli Chairman and Managing Director, PVR said, “The multiplex industry in India is at the cusp of rapid transformation and at next stage of growth led by consumers demand and convenience, experience and technology.

“We are pleased to welcome Warburg Pincus as investor in PVR as we continue to augment our long-term growth and expansion. The company’s world network and experience will be priceless to us as we move forward,” he added.

Currently, PVR operates a cinema circuit consisting of 562 screens in its 122 properties in 48 cities across India.

“Warburg Pincus is happy for investing in PVR, and has been impressed with Ajay’s passion and unrelenting commitment towards the business. The film and entertainment market in India is expanding at a rapid pace and we are looking forward to support Ajay and the whole management team of PVR during the next stage of growth,” said Vishal Mahadevia, Managing Director and Co-Head, Warburg Pincus India.