Why PVR, Inox Leisure shares rose up to 18% in early trade

Shares of multiplex players PVR Ltd and Inox Leisure rose up to 18% in early trade today after the Maharashtra government allowed reopening of cinema halls from October 22 in the state.

PVR share rose 10% to hit a fresh 52 week high of Rs 1,662 against previous close of Rs 1,511 on BSE. The midcap stock has gained after 2 days of consecutive fall. PVR share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The share has gained 45% in one year and risen 21% since the beginning of this year. Total 2.25 lakh shares changed hands amounting to turnover of Rs 36.20 crore. Market cap of PVR rose to Rs 9,660 crore on BSE.

Inox Leisure share zoomed 17.84% to Rs 412.2, a fresh 52 week high, against previous close of Rs 349.80 on BSE. The stock has gained 8.3% in the last 2 days. The share opened with a gain of 7.78% at Rs 377 today. Inox Leisure share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The small cap stock has gained 49.12% in one year and risen 34.16% since tyhe beginning of this year. Total 2.95 lakh shares changed hands amounting to turnover of Rs 11.34 crore. Market cap of Inox Leisure rose to Rs 4,639 crore on BSE.

Maharashtra Chief Minister Uddhav Thackeray on September 25 announced that theatres can reopen in the state from October 22. The decision was taken after a meeting with film industry and theatre representatives.

In early September, the Multiplex Association of India appealed to the Maharashtra government to reopen cinemas.

They stated that they have lost approximately Rs 4,800 crore since March 2020 and need theatres to reopen to save jobs. The meeting was attended by filmmaker Rohit Shetty, Jayantilal Gada of Pen Studios, Kamal Gianchandani, President of Multiplex Association of India and CEO, PVR Pictures, Alok Tandon, CEO of Inox leisure Ltd, Devang Sampat, CEO of Cinepolis India, among others.

Cinema halls have reopened in many states including Delhi and Uttar Pradesh after restrictions imposed due to the novel coronavirus pandemic were lifted.

However, Maharashtra kept the theatres closed adopting a cautious stance amid predictions of a third wave of Covid-19.