Warburg Pincus invests $120m in India's PVR

Along with Multiples, PVR’s promoters will also part exit their stakes to Warburg Pincus. Both sellers will retain an interest in the company, with Multiples holding 14% and the promoters owning more than 20% between them. This is the second partial exit for Multiples, which invested INR1.8 billion in 2012 for about a 16% stake, sold about a third of its holding in 2014, then invested another INR3.5 billion in 2015 to raise its stake to about 20%.

PVR’s previous PE investors include L Capital (now known as L Catterton), which committed about INR1.1 billion to the company in 2012 and another INR800 million alongside Multiples later the same year. L Capital has since fully exited PVR, having sold its stake back to the holding company for an undisclosed amount in 2015 and selling the rest on the open market later that year.

With 122 cinemas in 48 cities across India, PVR is the country’s largest film and retail entertainment company. It was founded in 1997 and received investments from ICICI Venture in 2003 and 2005. At the time Multiples founder Renuka Ramnath was the CEO of ICICI Venture. The GP exited its stake in several tranches following PVR’s 2005 IPO.

“The Indian multiplex industry is at a cusp of rapid transformation and at the next level of growth, driven by consumer demand and experience, convenience and technology,” said Ajay Bijli, PVR’s chairman and managing director, in a statement. “We are delighted to welcome Warburg Pincus as an investor as we continue to accelerate our long-term development and expansion.”

According to its most recent annual report, PVR recorded income of INR17.7 billion for the year ended March 2016, up from INR13.9 billion the previous year. Over the same period profit rose from INR136 million to INR1.4 billion.

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• Topics
• South Asia
• PIPEs
• Consumer
• Media
• Trade sale
• India
• Warburg Pincus Asia
• Multiples Alternative Asset Management