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Katherine Gonsalves made post

Why is PVR raising funds through a rights issue at this point of time?

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Rutuja Nigam answered.
3 weeks ago

PVR has come out with a rights issue which opened on 17 July. PVR will use the proceeds towards prepayment of certain borrowings to reduce its financial risk. The rights issue closes on July 31. PVR will offer a total of 38.24 lakh rights shares to raise Rs.300 crore in total. The rights price has been set at a 24% discount at Rs.784.

The rights will be issued in the ratio of 7:94 as on the record date of July 10. The RE or rights entitlement is already trading on the NSE and will continue to trade till July 24. PVR has been in a financial crunch of sorts in the last few months due to the lockdown which has brought their cinema and F&B business to a virtual halt.