PVR, Inox Leisure rally after Maharashtra allows cinemas to reopen on Oct 22

Shares of two multiplex operators PVR gained 5.28% to Rs 1590.90 and Inox Leisure was up 8.39% at Rs 379.15 on Monday. The rally was driven after theatres and auditoriums in Maharashtra will open after 22nd October 2021 while observing all Covid safety protocols. SOP (standard operating procedure) is in the works and will be declared soon, the Office of Chief Minister Uddhav Thackeray tweeted on 25 September 2021.

In the past month, shares of Inox Leisure have risen 24.02% and shares of PVR have risen 20.26%. The Sensex has risen 7.13% in one month.

On 7 September 2021, the Multiplex Association of India (MAI), along with leading cinema chains PVR and INOX, urged the Maharashtra government to reopen theatres in the state on urgent basis, claiming that the exhibition industry has suffered losses to the tune of Rs 4,800 crore. The coronavirus pandemic had an overwhelming effect on the film industry as many film shoots and theatres across India were halted twice.

All other States across the country have reopened cinemas, State of Maharashtra, which is the most critical part of a functioning film industry, is the only major State, where cinemas are yet to reopen, MAI said in a statement.

In 2020, film production activities and theatres business came to a standstill from mid-March when the pandemic first hit India, only to be restarted for a few months from October and November in various parts of the country. Due to the second wave of Covid-19, which hit India in April this year, theatres across India remained closed from the same month.

As cases of Covid-19 dropped, states like Madhya Pradesh, Rajasthan, Punjab, Haryana, Gujarat, Andhra Pradesh and Telangana have permitted the resumption of operations in cinema halls. However, Maharashtra is yet to reopen theatres.