L Capital Eco Ltd, a New Delhi-based subsidiary of investment fund L Capital Asia, will invest Rs108crore (around $19m) in PVR, one of the largest cinema chains in India.
L Capital Asia, a corporate venturing unit of luxury good conglomerate LVMH, was launched in China and India last year. The investment in PVR follows its investment strategy of investing in multiple sectors, including media and entertainment.
The investment will be in PVR’s cinema and in-mall entertainment. The deal will see the investment split, with Rs57.7crore ($10.4m) invested through the preferential allotment route in PVR Ltd for a 10 percent stake. L Capital will subscribe to roughly 28.85 lakh (just under 2.9m) shares in PVR at Rs200 per share.
The remaining Rs50.1crore ($9m) will be entered into a joint venture with PVR to invest in various in-mall entertainments, gaming, food, and leisure activities. PVR bluO Entertainment, PVR’s bowling business, will become a part of this new subsidiary.
Mr Ajay Bijli, Chairman and Managing Director of PVR, said in a statement: “This is in line with our vision to evolve into a full-scale lifestyle entertainment company over the next 4-5 years. L Capital has a strong global reach and has already made introductions to multiple international entertainment, leisure and F&B concepts.”