PVR share price climbs 4% after board approves rights issue

PVR share price gained nearly 4% in trade today after its board cleared a rights issue of shares  worth Rs 300 crore.  Share price of PVR rose 3.88% to Rs 1,083.85 against previous close of Rs 1043 on BSE. The midcap stock has gained 5.86% in last 4 days.

The share trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages. Total 0.45 lakh shares changed hands amounting to turnover of Rs 4.80 crore.

PVR share has lost 44.22% since the beginning of the year and fallen 36.79% during last one year. In a week, the share has gained 5.62%. The share hit 52-week high of Rs 2,121 on February 20, 2020 and 52 week low of Rs 719.50 on May 19, 2020.

The stock has gained 50.52% from its 52 week low till date. PVR has announced a price of Rs  784 per  equity share for its Rs 300-crore rights issue. Those entitled to the rights issue will get 7 fully paid-up equity shares for every 94 equity shares held on the record date.

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The board has announced that the record date for the purpose of determining the shareholders eligible to apply for the equity shares in the Rights Issue is July 10,2020 The rights issue will open on July 17, 2020 and close on July 31, 2020.The multiplex operator posted a net loss of Rs 74.61 crore for the fourth quarter ended March 2020 after COVID-19 pandemic affected film exhibition business.

Revenue from operations in Q4 fell to Rs 645.13 crore compared to Rs 837.63 crore in the corresponding quarter a year ago. PVR booked a one-time write off of perishable inventory of Rs 1.83 crore in March 2020 due to spoilage due to closure of movie halls after COVID-19.

For the 2019-20 fiscal, PVR's net profit stood at Rs 26.85 crore against Rs 189.40 crore in 2018-19. Revenue from operations in FY20 stood at Rs 3,414.44 crore against Rs 3,085.56 crore in FY19.

PVR said its results for year ended March 31, 2020, are not comparable with year ended March 31, 2019, 'on account of acquisition of SPI Cinemas'. Currently, PVR operates 845 screens in 176 properties across 71 cities.

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