PVR Pictures limited which is the film production and distribution branch of the parent company PVR Limited has signed agreements with ICICI Venture Funds Management Company Private Limited and JPMorgan Global Special Opportunities Group, one of JPMorgan Chase Bank N.A's private equity arms for the investment of Rs.1.2.billion in the company.
The deal was signed as part of PVR Picutres Limited's major expansion plans.
Both JPMorgan and ICICI Venture will invest Rs. 600 million each in PVR Pictures.
This mega financial deal between the entertainment company and the two financial institutions will enable PVR Limited to become a fully integrated film and entertainment company with interests across the entire value chain including production, distribution and exhibition.
Touted as one of the biggest private equity investments in the Indian film and entertainment sector in the recent times, this deal exhibits the strong confidence ICICI Venture and JPMorgan have in the entertainment company's strong business structure, expertise in management and the future potential of the film Industry.
PVR Limited is now one of the biggest owners of multiplexes in India and contributes around 15% of the box office collections of any successful Bollywood film.
This deal will result in PVR Pictures exhibition circuit getting stronger and also make the company a leading player in the production of the movies.
PVR Pictures is already a seasoned player in the Indian film distribution space with the experience of distributing over 100 Bollywood and Hollywood films during the last couple of years.
However the company ventured into the movie financing business only recently with the block buster 'Taare Zameen Par' which it co produced with Aamir Khan Productions Private Limited.
The film was appreciated both by the public and critics and received 5 Filmfare and 5 Screen awards.
Upbeat about its success in the first attempt itself, the company is charged up to release more of its production ventures in the coming months.
The next film is 'Jaane Tu Ya Jaane Na' which is a co production with Ram Gopal Verma, 'Mere Khawbon Mein Jo Aaye" and 'Ghost Ghost Na Raha'.
PVR Pictures will also increase the number of films in its production pipeline to 8-10 films from 4-5 this year.
PVR is also distributing the forth coming films like 'Sarkaar Raaj' which it is distributing in only a few territories and 'Mere Baap Pehle Aap' which will be distributed all over India.
Managing director of PVR Limited which is listed on the BSE and NSE, Mr.Ajay Bijli said that the new deal is a matter of great pride for the company as it shows the faith of the two leading private equity funds in the business model and management team of PVR Pictures.
He also expressed certainty in the partnership as one which will accelerate the entertainment major's ambition of making PVR Pictures one of the leading companies in the film production and distribution space in Indian market.