PVR Inox stock plunges 8% on alleged executive kickback investigation
Shares of the Indian multiplex operator tumbled following reports of a ₹200 crore internal kickback probe, casting doubt on its governance just as a major share buyback concludes.
PVR Inox shares plunged 8 percent to ₹1,128.50 on the Bombay Stock Exchange during intraday trading on Monday. The sharp sell-off follows reports that the multiplex chain is conducting an internal investigation into alleged kickbacks tied to cinema property construction.
The alleged improper payments reportedly span several years and may total up to ₹200 crore. Pramod Arora, the executive overseeing Growth and Investment who spearheaded the company’s expansion into smaller cities, was named in the reports.
Management reportedly became aware of the allegations in April. Consequently, Arora and several other employees were dismissed with immediate effect.
This governance scrutiny arrives at a sensitive moment for the stock, immediately after the September 4 ex-date for the company’s share buyback. The board approved the repurchase of up to 2.07 million equity shares at ₹1,450 each on August 31, 2026.
The ₹300 crore tender-offer programme was priced at a significant premium to Monday’s intraday market value. Promoters and members of the promoter group have also indicated their intention to participate in the repurchase.
Investors are now reassessing the company’s valuation against this fresh reputational risk. The stock recently retreated from a 52-week high of ₹1,283 reached last month, though it remains well above its March 2026 low of ₹900.
Formed from the 2023 merger of PVR and Inox Leisure, the operator currently manages 1,786 screens across 356 properties in 113 cities in India and Sri Lanka. The company maintains an ambitious strategy to add 1,000 more screens over the next five years, heavily relying on franchise-led growth.
Market participants will closely monitor whether the internal probe expands and how the alleged financial discrepancy might impact future capital allocation. The outcome will be critical for institutional investors evaluating the operator’s long-term expansion viability.
