Warburg Pincus invests Rs820 crore in PVR for 14% stake

Private equity firm Warburg Pincus has acquired a 14 per cent stake in PVR, India's largest film and retail entertainment company, for about Rs820 crore.

The stake is being acquired from affiliates of PE firm Multiples Alternate Asset Management, which will remain as long term investor with a 14-per cent stake, while the current promoters will remain the largest shareholders with over 20 per cent stake.

''Over time, PVR has developed a leadership position in the Indian film and entertainment market. 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, chairman and managing director at PVR.

PVR is the largest premium film and retail entertainment company in India, with it currently operating a cinema circuit comprising 562 screens in 122 properties in 48 cities pan India. The company was incorporated in 1997.

''Warburg Pincus is excited to invest in PVR, and has been impressed by Ajay's passion and continued commitment to the business. The Indian film and entertainment market is expanding rapidly and we look forward to supporting Ajay and the entire management team during the next phase of growth,'' said Vishal Mahadevia, managing director and co-head at Warburg Pincus India.

Warburg Pincus is a private equity firm with more than $40 billion of assets under management. The firm has a portfolio of more than 130 companies. Multiples is an independent, India-focused private equity firm that was founded in 2009 by Renuka Ramnath and it manages over $1 billion of private equity capital raised from Indian and global institutions.

''Multiples has been a long term investor in PVR and continues to hold a significant stake in the company. We are excited that Warburg Pincus, a global institution of repute, has acquired a large stake in the company. Having invested in PVR when it was a 12 screen cinema house in 2003, it has been an exhilarating journey with an outstanding entrepreneur. We are excited to remain invested and partner Ajay Bijli and his team as they navigate PVR to a higher orbit of performance and scale,'' Renuka Ramnath, Founder and Managing Director, Multiples Alternate Asset Management said.