The merged company will be controlled by 10.62 per cent of PVR promoters and 16.66 per cent of Inox.
The Securities and Exchange Board of India (SEBI) has approved the merger of multiplex operators PVR and Inox, marking a crucial milestone in the regulatory process.
The combination of the two businesses, which would result in India's largest multiplex chain with a network of more than 1,500 screens, was first announced in March. According to the deal, Inox would combine with PVR at a share-for-share exchange ratio of 3 PVR shares for every 10 Inox shares.
"The merger is pending approval from the shareholders of PVR and Inox, as well as stock exchanges, SEBI, and any further regulatory clearances that may be necessary. The Inox promoters will join the current PVR promoters as co-promoters in the amalgamated organisation, the two firms said in March.
PVR promoters will own 10.62% of the merged company. Promoters of Inox will own 16.66% of the company, they said. Following SEBI clearance, analysts anticipate that the merger process will be finished in 2 to 3 quarters.
The board of the merged firm will be reorganised with a total of 10 members when the merger goes into effect. With two seats apiece, the promoter families of PVR and Inox will be equally represented on the board.