PVR files for IPO

Multiplex cinema operator PVR Ltd on Tuesday filed its draft red herring prospectus with the Securities and Exchange Board of India to tap the capital market with an initial public offering IPO of 77 lakh equity shares of Rs 10 each.

The proceeds from the book built issue would be used to finance new cinema projects, expand film distribution business, technological upgradation and renovation of cinemas, according to a company release.

The company plans to expand its footprint to Mumbai, Hyderabad, Indore, Gurgaon, Lucknow, Chennai, Ludhiana, Aurangabad and Latur, besides Delhi, it said. Of the total issue, three lakh equity shares have been reserved for Priya Exhibitors Pvt Ltd, one of the promoters and 1.5 lakh equity shares for employees. Up to 50 per cent is reserved for qualified institutional buyers including mutual funds, on a proportionate basis, it said.