PVR, Inox Share Prices Settle At Record High As Cinema Halls Reopen in Maharashtra
Investors witnessed a big jump in the share prices of PVR Ltd and Inox Leisure after the Maharashtra government permitted the reopening of cinema halls for a limited crowd from November 5, 2020. PVR Ltd settled 9.52 per cent higher at ₹ 1220.95 apiece on the BSE whereas INOX Leisure Ltd settled 4.31 per cent higher at ₹ 275.75 apiece. During the day, PVR share price surged 9 per cent to ₹1,212.50 apiece while those of Inox Leisure jumped over 5.5 per cent to ₹ 279.40 apiece. The Maharashtra government has allowed cinema halls, multiplexes as well as drama theatres to operate with a 50 per cent seating capacity.
The shares of PVR have so far surged over 60 per cent from their lows in May this year. Inox Leisure shares too showed a similar pattern this year. The reopening of multiplexes will only see 50 or less people gathering at once. According to reports, PVR reopened around 577 screens in 16 states and UTs with the 50 per cent cap on the occupancy, which is likely to stay in effect during whole of Q3 as per management. The initial occupancy has been marginal at around 4-5 per cent as some old films were being screened everywhere except West Bengal.
Research and brokerage firm Motilal Oswal Financial Services stated that the recent shift in movies to OTT platforms and their increased viewership raise concerns regarding the sharp competition from the OTT medium. However, multiplexes are expected to resume operations with a fixed exclusive window of movie viewing in cinemas and a healthy flow of movie content.
