PVR INOX FALL AMID INTERNAL PROBE INTO ALLEGED

PVR INOX shares fell nearly 8% on September 7 after a report by The Economic Times said the multiplex operator had asked a senior executive to leave in April following an internal investigation into alleged kickbacks linked to developers involved in building its cinema properties. According to the report, Pramod Arora, PVR INOX’s Chief Executive Officer for Growth and Investment, was allegedly involved in receiving kickbacks from developers of cinema properties. Arora had played a key role in PVR INOX’s expansion into Tier-II and Tier-III cities, particularly through asset-light formats. These included franchise-owned, company-operated cinemas as well as the SMART/Smart Screen initiatives, which were aimed at offering lower-cost, digital-first multiplexes in smaller cities and towns. The company reportedly became aware of the allegations in April, following which Arora and a few other employees were asked to leave with immediate effect. The report further stated that a declaration signed by Arora restricted him from joining rival cinema chains and approaching PVR INOX’s existing vendors. The document also reportedly allows the company to pursue legal action if these restrictions are breached. Meanwhile, PVR INOX’s board approved a ₹300 crore share buyback on August 31, 2026. Under the proposal, the company will repurchase up to 20,68,965 equity shares at ₹1,450 per share, representing an approximately 20% premium to the August 31 closing price. The buyback will be conducted through the tender offer route via the stock exchange mechanism and represents around 2.11% of the company’s total paid-up equity capital.