Cineline plans to monetize Eternity Mall at Nagpur for Rs 60 crore
With the ambitions to make a comeback in the movie exhibition business under new brand name “MovieMax”, Cineline has been taking strong steps in the direction since the beginning of FY22-23.
While the promoters have infused capital of Rs 35.1 crore through convertible warrants to help increase its penetration and acquire more screens, PAN India. The company is targeting to tie up p 300+ screens by FY25.
The company plans to reduce its debt by monetising Eternity mall at Nagpur for a consideration up to Rs 60 crore. The sale is expected to be completed in the next quarter and the sale amount will be used to repay debt as well as to support the growth of the film exhibition business.
The preferential issuance is of 27,00,000 warrants each convertible into, or exchangeable for, one equity share within the period of 18 months at Rs 130 each aggregating up to Rs 35.10 crore.
“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,” commented Rasesh Kanakia, Chairman of Cineline India.
Cineline India Limited, formerly Cinemax Properties Limited, apart from theatre exhibition is also engaged in retail space and windmill business. The company has reported a consolidated net loss of Rs 7.33 crore for the last reported quarter i.e. Q4FY22. Net revenue fell by 7.03% at Rs 14.51 crore YoY, while sequentially it fell by 23.76%.
The share price has however performed well on the bourses lately. In last three months, the share has rallied 62.76% based on positive future outlook. It logged a 52-week high on April 28, 2022, at Rs 174.75.
At 11.05 am on June 8 , the shares of Cineline India were quoting at Rs 145, up 1.96% or Rs 2.8 per share from its previous close.
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