The Bijli brothers, Ajay Bijli and Sanjeev Kumar, have made a blockbuster start to the new year. Private equity (PE) firm Warburg Pincus has bought a 14% stake in PVR, the country’s largest multiplex chain, for Rs.820 crore through an open market transaction. Following the transaction, PVR, which operates 562 screens across 48 cities, has been valued at Rs.5,860 crore. Following the deal, the stock surged 12% in five trading sessions to Rs.1,291 a share, which is now trading at 27x estimated FY18 earnings. The company’s market cap currently stands at Rs.6,038 crore.
The PE major bought the stake from existing investor Multiples Alternate Asset Management, which sold 9%, and the promoters, who sold close to 5%. Following the transacti