Multiplex chain operator PVR INOX Ltd approved a ₹300-crore share buyback of up to 20.69 lakh shares at ₹1,450 per share on Monday (August 31), according to the latest exchange filing. The buyback represents 2.11% of the aggregate of the company's fully paid-up equity share capital and 4.07% of the aggregate of the company's free reserves, as reported by Business Standard. The buyback price is payable in cash and will be undertaken on a proportionate basis from shareholders and beneficial owners of equity shares. The company's board approved the proposal through the tender offer route and the buyback will be conducted through the stock exchange mechanism. At the approved price of ₹1,450 per share, the buyback price represents a premium of around 17-19% over the company's recent trading range of ₹1,220–₹1,242, establishing a firm valuation floor that reflects confidence in long-term screen yields and consistent cash generation.
The board has fixed Friday, September 4, 2026, as the record date for determining shareholders eligible to participate in the buyback, as reported by Business Standard. The company also noted the intention of its promoter and promoter group members to participate in the buyback. The board or the Buyback Committee may increase the buyback price and reduce the number of shares proposed to be bought back, provided the overall buyback size remains unchanged, up to one working day before the record date. This flexibility allows for last-minute adjustments to optimize the buyback structure. The detailed process, timelines and other requirements relating to the buyback will be disclosed in the public announcement and letter of offer, as per the company's latest communication.
According to the regulatory filing, PVR INOX has constituted a Buyback Committee and delegated powers to it for matters related to the proposed buyback. Murlee Manohar Jain, Company Secretary, has been appointed as the compliance officer for the buyback to oversee regulatory requirements. DAM Capital Advisors Ltd, a Securities and Exchange Board of India (SEBI)-registered merchant banker, has been appointed as the manager to the buyback. The buyback size excludes transaction costs, applicable taxes, brokerage, fees, filing expenses, advisory and legal fees and other related expenses.
The buyback announcement comes at a time when PVR INOX has achieved a strong turnaround with a consolidated net profit of ₹56.5 crore in Q1 FY27, compared with a net loss of ₹54.5 crore in Q1 FY26, as reported by Business Standard. The company has also turned net cash positive with ₹80.70 crore as of June 30, 2026, marking substantial balance-sheet deleveraging from its peak debt of ₹1,430.80 crore. Consolidated revenue from operations grew by 11.9% year-on-year to ₹1,622.2 crore during the June quarter of FY27, compared with ₹1,449.6 crore a year earlier. Operational performance also improved with 36.6 million admissions, marking an 8% year-on-year growth, and average ticket price (ATP) increasing 8% to ₹273. As of June 30, 2026, PVR INOX operated 1,779 screens across 113 cities in India and Sri Lanka, with expansion plans to open 90–100 new screens during FY27.
Ahead of the announcement, shares of PVR INOX settled 1.44% lower at ₹1,203.60 on the BSE, giving the company a market capitalisation of ₹11,819.35 crore, as per latest market data. As of August 28, promoters and promoter group held 27.53% in PVR INOX, with 2.70 crore shares, while foreign investors held 19.82%, financial institutions, banks and mutual funds held 35.03%, and public shareholders and others held the remaining 17.62%. The actual number of shares bought back and the post-buyback shareholding pattern will be determined after completion of the buyback. This marks PVR INOX's first post-merger share buyback, representing a decisive signal of structural turnaround and management's confidence in long-term prospects.
