NDTV Profit

PVR, DLF Shares Extend Gains On DT Cinemas Deal

The deal will help DLF pare its debt, which stood at nearly Rs 22,000 crore at the end of March 2016 quarter; PVR will get a bigger foot print in the country, giving more visibility to its future earnings.
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PVR, DLF Shares Extend Gains On DT Cinemas Deal

Shares of multiplex operator PVR jumped over 3 per cent, while realty developer DLF shares gained over 2 per cent on Wednesday. On Tuesday, PVR and DLF ended 4.7 per cent and 1.15 per cent higher, following the closure of DT Cinema deal. 

According to an amended agreement, DLF will sell 32 screens of DT Cinema to PVR for a revised consideration of Rs 433 crore. 

The deal will help DLF pare its debt, which stood at nearly Rs 22,000 crore at the end of March 2016 quarter; PVR will get a bigger foot print in the country, giving more visibility to its future earnings. 



"Post this deal our combined cinema circuit now increases to about 553 screens across 47 different cities in India," Nitin Sood, chief financial officer at PVR told NDTV Profit. (Watch

PVR is very bullish about its future growth post this deal. "We are looking at upwards of 20 per cent revenue growth rate for FY17," Mr Sood added. 

PVR shares closed 2.23 per cent higher at Rs 903.25, while DLF shares ended 2.46 per cent higher at Rs 133.10 compared to 0.17 per cent gain in the broader Sensex.



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