Multiples, L Capital fund India cinema deal

Renuka Ramnath's Multiples Alternate Asset Management and Paris-based L Capital have invested in cinema operator PVR, funding its acquisition of Cinemax India.

Multiples Alternate Asset Management and L Capital have invested INR 1.5 billion (€21 million; $27.3 million) and INR 820 million, respectively, into PVR, according to a company statement. 

Following the investment, each firm will own a 15.8 percent stake in the business as L Capital was an existing shareholder. 

PVR is a multiplex cinema chain in India with 46 operational properties, according to the statement. The private equity firms’ investment will be used to acquire a close to 70 percent stake in Cinemax India, which currently has 39 operational cinemas in the country. 

The Cinemax deal will be worth approximately INR 3.95 billion, with the acquisition followed by an open offer to Cinemax public shareholders for an additional 26 percent stake for cash, compliant with the Securities and Exchange Board of India’s takeover regulations.

“Multiples was able to move quickly and support the company. This is a perfect example of how private equity partnerships can transcend across different stages in the life cycle of a company. I am personally elated to be part of PVR's game-changing journey,” Renuka Ramnath, founder of Multiples, said in a statement.

Multiples Alternate Asset Management is an India-focused private equity firm led by ex-ICICI Venture chief executive Renuka Ramnath. The firm closed its maiden fund on $405 million in November 2011.