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AYM Syntex (Ashish Kacholia), PVR (Warburg Pincus) and Sarda Plywood (Porinju Veliyath) Witness Big Deals


We bring you the “Big Deals” for today. A summary of the most important Bulk and Block Deals.

Today’s Big Deals:

AYM Syntex (Ashish Kacholia), PVR (Warburg Pincus) and Sarda Plywood (Porinju Veliyath) Witness Big Deals

AYM Syntex: Ashish Kacholia books a loss

Earlier known as Welspun Syntex manufactures and sells synthetic yarn. Its products include polyester partially oriented yarn, polyester fully drawn yarns, polyester mono filament yarns, polyester draw texturized yarn and nylon yarns.
Big Whale Ashish Kacholia who held 1,404,107 shares or 3.58% sold shares worth Rs. 3 crore or 369,761 shares. This one gives Ashish a loss – he bought the shares are Rs. 118 in June 2015, and he sold at 81 today.

PVR: Big Sale by Promoters and Multiples PE

PVR does multiplexes and is the largest such owner in India.
Ajay Bijli and Sanjeev Kumar – the 2 promoters of the company sold 1,985,000 shares or 4.25% and 350,000 shares or 0.75% respectively to affiliates of Warburg Pincus i.e. Berry Creek Investment & Gray Birch Investment. Bijli nets Rs. 250 crore for his stake reduction, and Kumar about Rs. 44 crores. The promoter stake falls to about 20%.
Warburg collectively bought 65.41 lakh shares or 14.01%. Multiples PE (Renuka Ramnath) which collectively held 31.40 lakh shares or 9.63% as of December, 2016 also sold 6.23 lakh shares or 1.34%.
It is unclear if the remaining 35.82 lakh shares were purchased by Warburg Pincus from the market or from another investor. The deal value stood at Rs. 820 crore.
Warburg Pincus India’s Managing Director and Co-head Vishal Mahadevia said:

Warburg Pincus is excited to invest in PVR, and has been impressed by Ajay’s passion and continued commitment to the business. The Indian film and entertainment market is expanding rapidly and we look forward to supporting Ajay and the entire management team during the next phase of growth.

Brokerage firm Motilal Oswal expects PVR to report a Net Profit at Rs 25.8 crore for Q3 – down 11.6% sequentially. However, CEO – PVR Pictures and Chief of Strategy, PVR Ltd Kamal Gianchandani has confirmed that the percentage of online sales has grown significantly since November while cash sales have fallen.

The % of sales through online channels had risen to 58% since the demonetisation announcement, while offline cash payments had significantly reduced from 55% to 25% as of December-end. There was a drop in admissions which normalized on the 3rd day after demonetization. Online channel sales have gone up. Of the remaining 42% sales through offline channels, cash is 25% while remaining is through various cards.
Impact to FNB has been as same to box office. Business has been calibrating and adjusting itself to the new environment. All initial impact is wiped out and everything is back to normal.

PVR has also been the biggest contributor in the 350 crore box office collection of Dangal. CEO PVR Cinemas, Gautam Dutta said:

Dangal was one of the most keenly awaited and one of the biggest films that we were expecting this year. The numbers that the film has delivered is fantastic. It has exceeded our expectation by at least 15% to 20%.Moreover, the government took the step of making this movie tax free in few states such as Uttar Pradesh, Chhattisgarh, Uttarakhand and Haryana, which eventually encouraged the patrons to watch the movie and be inspired.

Sarda Plywood Industries: Porinju Buys More

The flagship company of the prestigious Chitlangia Group which has a significant presence in Paper and Tea besides Plywood and allied products.
Porinju Veliyath of Equity Intelligence who together with this family holds 194,763 shares or 4.3% as of December, 2016 purchased an additional 50,000 shares at a value of Rs. 67 lakh.
Disclosure: Some or all of the above stocks are in Capitalmind portfolios.
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