The non-profit group CUTS has filed a complaint against a proposed merger agreement between telex operator PVR and INOX Leisure NSE -6.09%, saying it would have competitive implications in the film business. According to a statement issued on Thursday, the Consumer Unity and Trust Society (CUTS) has requested that the Competition Commission of India (CCI) look into the situation.
On Thursday, CUTS said that were it not for the SOVID exception, the PVR-INOX deal would not fall under the CCI exception.
Trading above these limits requires regulatory approval.
The non-profit group also said the proposed plan could result in lower prices for customers and rates.
PVR and INOX did not respond to emails requesting a response on the issue.
According to the information, the complaint was filed in July and a message is expected from the head of the State Committee for National Security.
Regarding the deal, INOX Leisure Ltd NSE Director -6.09% Siddharth Jain said on March 27 about regulatory approval: “We have been advised that regulatory approvals are required such as Sebi, permitting rules, NCLT, etc. reported that no prior notice to the Chamber of Commerce and Industry is required.”
On June 21, PVR and INOX Leisure announced that they have received approval from the NSE and BSE exchanges.
Over the past 12 years, the number of film screenings has increased and the number of big players has decreased from 11 in 2009-2010 to 5 in 2022, according to CUTS.
PVR and Ink run into trouble after CCI complaint about anti-competitive products
Shares in multiplex chains PVR Ltd and Enoch Leisure Ltd fell more than 2% on Friday after the non-profit organization Consumer Confidence Council (CUTS) asked the Competition Commission of India (CCI) to withdraw its offer. CUTS said the deal would have an anti-competitive effect on the film industry.
At 11:00 am, PVR shares traded at Rs 1,873.45, down 2.29%, while Anuk Laser shares traded at Rs 512.20, down 2.48% on the BSE. Both stocks fell within seven days. PVR fell 11.41% over the same period while Anuk fell 12.91% over the same period.
In March, India’s two largest multiplex chains agreed to merge parts of their companies to form India’s largest film company, with a network of over 1,500 screens.
After the merger, Anuk Promoters will own 16.66% of the new company and PVR Founders will own 10.62%. PVR Chairman and CEO Ajay Bijli will become CEO of the combined company and Sanjeev Kumar Bijli.
Also Read: Anok Laser, PVR BSE Merger Deal, NSE Get Nodes
The companies have previously said they do not need CCI approval for the merger because the pandemic forced them to close for several months and cut their net income to less than Rs 100 billion.
According to CUTS, the merged PVR-Ink will be the largest player in the Indian film projection sector following the merger, ultimately securing the largest market share in the Indian city.
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With a market share of over 50% in at least 19 cities, PVR-Ink has the potential to outperform its competitors and become number one in 43 cities. According to CUTS, this will reduce consumer choice and force consumers to join the PVR-Ink channel package, which could lead to higher ticket prices and lower quality food and services.
In addition, PVR-Inok’s strong negotiating position may result in unfair terms for distributors, food and beverage suppliers, technical equipment suppliers, and others.
According to CUTS, the PVR-Ink contract would not meet the concessions required by the CCI were it not for the lockdown due to COVID-19. This information was submitted on July 27, 2022, and the group is awaiting a hearing at the CCI.
It is also noted that over the past 12 years, the film industry has gradually consolidated through a series of mergers and acquisitions, as a result of which the number of major players has decreased from 11 in 2009-2010 to just 5 in 2009-2010. 2022 means PVR, Inuk, Carnival Cinemas, Cinepolis, and Mirage Cinemas.
CUTS Filed Complaint About Suspicion of Merger of PVR and INOX Leisure
INOX Leisure Limited | Film Production, Distribution, and Entertainment | middle | Mad Cow Disease: 532706 | NSE: stainless steel
Consumers Unity & Trust (CUTS) has complained about the proposed merger agreement between multiplex operator PVR and INX Leisure. The Competition Commission of India (CCI) has been requested by CUTS to look into the situation.
Previously, PVR and INX Ledger announced a merger to build the nation’s largest multiplex network with over 1,500 screen networks, opening up opportunities in Tier III, IV, and V cities as well as developed markets.
INX Ledger is one of the largest multiplex networks in India.
INOX Leisure collapsed after CUTS appealed merger with PVR-INOX Leisure
Ink Entertainment Ltd. | Film Production, Distribution, and Entertainment | BSE Media: 532706 | BELOW: INOXLEISURE
The cost of living for Ink Welfare is in US dollars. 504.25, down 20.95 points or 3.99% from the latest close of Rs 525.20 on BSE.
The thesis starts at Rs 526.00 and reaches a high and a low of Rs 526.00 and Rs 503.70 respectively. So far, 34,321 shares have been traded over the counter.
BSE Group ‘A’ Shares are listed at Rs. 10 reached a 52-week high of Rs. 622.30 on August 4, 2022, and a 52-week low of Rs. 299.25 on Sept 13.
The price was high and low last week. 552.25 and rupees. 503.15 respectively. The current market cap of the company is Rs 6189.13 thousand.
Sponsorship ownership in the company is 44.03% while institutional owners are 43.25% and non-institutional owners are 12.72%.
Consumer Unity & Trust (CUTS) has filed a lawsuit against the merger agreement between PVR and INOX Leisure, alleging that the deal could adversely affect competition in the film industry. To look into the situation, CUTS has contacted the Competition Commission of India (CCI).
Previously, PVR and INOX Leisure announced their partnership to create an expansive multi-screen network with a network of more than 1,500 screens to unlock opportunities in Tier III, IV, and V cities outside of developed markets.
INOX Leisure is one of the largest chains in India.