Cinemax India To Issue IPO
Over the last few years movie theaters in the US have had a hard time competing with all of the entertainment choices out there. Between DVD by mail, the Internet, DVR growth and a shortage of creativity in Hollywood, we’ve seen investors back away from movie theaters and instead focus on internet distribution and video on demand. In India though, it appears that at least one theater chain thinks that there is still a great opportunity in the cinema industry and is trying to raise funds to go on an acquisition spending spree. With only 33 screens at 10 locations, Cinemax India is still considered the fourth largest theater chain in India and currently has announced plans to issue an IPO for Rs 125-150 crore (about $26 – $35 million USD) in order to acquire more theaters and expand the theater industry in India. The underwriting itself will only represent a 32% stake in the business, but it should give Cinemax India enough working capital to begin their expansion plans. The company is reportedly interested in targeting mall locations for their multi-plex expansion.
Posted on October 2nd, 2006 by Davis
Filed under: Movies