Multiplex stocks rally on report Amazon eyeing stake in film distribution firms

Mumbai: Shares of multiplex operators and entertainment companies were trading higher on Tuesday after The Indian Express reported that Amazon India was in talks with firms in the film and media distribution business, including Inox Leisure, for a potential stake.

Shares of Inox Leisure gained 5%, PVR advanced 2%, UFO Moviez 3%, Mukta Arts 4%, Cineline India 1%. Eros International Media rose 1% and Tips Industries 3%.

Inox Leisure, however, said the report was factually incorrect and there was no discussion between the company and Amazon India. "There are no discussions taking place between Inox Leisure and Amazon, nor were there any such discussions in the past," it said in a note to exchanges.

With its over-the-top (OTT) content business not growing as fast as the company expected, and with movie theatre chains impacted by lockdowns over the last year-and-a-half, Amazon India is said to be looking at acquiring interest in some of these businesses, The Indian Express report said.

Inox Leisure, one of the largest movie theatre chains in the country, has around 153 multiplexes and 648 screens across the country.

Occupancies at theatres have collapsed as people refrained from venturing out because of the various restrictions imposed to contain the spread of infections and the need to protect themselves from the virus. In FY21, both PVR and Inox Leisure saw their consolidated operating revenues drop by 92-94% on a year-on-year basis.