Cineline India has made a comeback in the movie exhibition business under a new brand, MovieMax, and aims to grown PAN India in the cinema space. Under the new brand, it successfully started operations from 1st April 2022.
The Company announced that the Board of Directors, in its meeting approved the issuance of up to 27,00,000 warrants each convertible into, or exchangeable for, one equity share within the period of 18 months at a price of Rs. 130/- each aggregating upto Rs. 35.10 crores to the Members of the Promoter Group by way of preferential issue. The Preferential issue is subject to necessary regulatory and shareholder approvals.
Upon issuance of warrants an amount of Rs. 75/- for each Warrants shall be payable by the Warrant holders at the time of subscription and allotment of each Warrant (~Rs. 20.25 crores) and the balance Rs. 55/- for each Warrants shall be payable by the Warrant holders on the exercise of the Warrants (~Rs. 14.85 crores).
Also, the Board of Directors, in its meeting approved the proposal for monetizing property of the Company viz. Eternity Mall located at Nagpur for a consideration of upto Rs. 60 crores. This is subject to necessary regulatory and shareholder approvals.
Commenting on the same, Rasesh Kanakia, Chairman, said, “We are seeing a big wave of opportunity and have big plans for growth in the film exhibition business. We are going to be a prominent player in this film exhibition industry, and we are targeting to tie up ~300+ screens by FY25.
We are looking to grow this business aggressively. To support the enormous growth opportunity, we as promoters have infused capital of Rs. 35.1 crores through convertible warrants. This will help us to increase our penetration and acquire more screens, PAN India.
Also, we have received approval for monetizing the Mall at Nagpur for a consideration of upto Rs. 60 crores. We expect this sale to complete in the coming quarter. This too will help reduce debt as well as support the growth of the film exhibition business”.