Multiplex chain PVR Ltd is looking to raise up to Rs 250 crore through issue of non-convertible debentures to fund various activities, including acquisitions.
The company is seeking nod from shareholders to approve the matter at its annual general meeting to be held on September 29. “Based on the needs of funds, the company may issue fresh non-convertible debentures (NCDs) for a sum not exceeding Rs 250 crore for inorganic growth opportunities, for capital expenditures, to refinance the high cost of borrowings and for corporate and all other business needs of the company,” PVR Ltd said in a BSE filing.
Raising of funds through the issue of NCDs will result in the borrowed money exceeding the aggregate of the company’s paid up share capital and free reserves, it added.
In order to expedite the raising of the funds, the company is seeking approval of the members to authorise its board for the issue and allotment of the NCDs, the filing added.
Earlier this year, PVR had completed acquisition of 32 screens of DT cinemas at a revised consideration of Rs 433 crore after Competition Commission directed the companies to exclude certain assets from the deal to address anti-competitive concerns
In June last year, PVR had announced the acquisition of DT Cinemas for Rs 500 crore after aborting from a similar deal in February 2010.
Shares of PVR Ltd were trading at Rs 1,181.45 apiece in the afternoon trade, up 0.40 per cent from the previous close on the BSE.