L Capital Eco, a New Delhi-based subsidiary of the $640 million private equity fund L Capital Asia, has signed an agreement to invest about Rs 108 crore, or roughly $19 million, in the Indian theatrical chain PVR. L Capital Asia is backed by the luxury goods groups Louis Vuitton Moët Hennessy (LVMH) and Group Arnault, the investment arm of LVMH chair and CEO Bernard Arnault.
L Capital Eco, a subsidiary of private equity fund L Capital Asia, has signed an agreement to invest about Rs 108 crore in PVR’s cinema exhibition and in-mall entertainment business.
Under this agreement, L Capital will invest Rs 57.7 crore through the preferential allotment route in PVR Ltd for a 10 per cent stake. The PE firm will subscribe to about 28.85 lakh shares in PVR at a price of Rs 200 per share. This is subject to statutory approvals.
L Capital will also make an initial investment of Rs 50.1 crore for a joint venture with PVR to invest in various in-mall entertainment formats, gaming, food and leisure formats.
PVR’s existing investment in PVR bluO Entertainment, its bowling business, will become a part of this new subsidiary. The joint venture will require a nod from the Foreign Investment Promotion Board.
L Capital Asia is the private equity arm of luxury company LVMH.
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.”
He added that the company expects to be able to bring multiple entertainment concepts to India through this partnership.