PVR INOX approves 300 crore rupee share buyback at 20% premium to market
India's largest cinema exhibitor PVR INOX has authorized its first share repurchase program, signaling management confidence following a return to profitability and a recent stabilization in its stock price.
PVR INOX announced on Monday that its board approved a share repurchase of up to 20.68 lakh equity shares at 1,450 rupees each. The 300 crore rupee buyback represents a 20% premium over the stock's closing price of 1,207 rupees on the day of the announcement.
The repurchase will be executed through a tender offer on a proportionate basis via the stock exchange mechanism. This initiative accounts for 4.09% of the company's standalone paid-up equity and free reserves based on its audited FY26 financial statements. Under securities regulations, the board retains the flexibility to increase the offer price while proportionately reducing the share count, keeping the overall size unchanged.
DAM Capital Advisors has been appointed to manage the transaction, with Company Secretary Murlee Manohar Jain acting as the compliance officer. Shareholders must be on the register by the record date of 4 September 2026 to participate in the offer.
The company noted that its promoters and promoter group members have indicated their intention to take part in the buyback. Further details regarding the process, timelines, and specific participation mechanics will be outlined in an upcoming public announcement and letter of offer.
This capital return initiative arrives as the multiplex operator attempts to rebuild investor confidence after three consecutive years of negative stock returns. While the shares have rallied 26% over the past two months and gained 18% year-to-date in 2026, they remain approximately 45% below their all-time high of 2,214 rupees.
The buyback is underpinned by a return to profitability in the June quarter of FY27. PVR INOX posted a consolidated net profit of 56.5 crore rupees, reversing a 47.3 crore rupee loss from the same period a year earlier.
Revenue from operations climbed to 1,622.2 crore rupees during the quarter, up from 1,449.6 crore rupees previously. The exhibitor also reported an 8% year-on-year increase in both admissions, which reached 36.6 million, and average ticket prices, which rose to 273 rupees.
Looking ahead, management expects a strong content pipeline featuring franchise and star-led releases to sustain momentum. The company currently operates 1,779 screens across 113 cities in India and Sri Lanka, and remains on track to add 90 to 100 new locations in FY27 focusing on asset-light formats.
