Inox Leisure climbs 12% as Amazon India mulls buying stake

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Shares of Inox Leisure advanced over 12% in Tuesday’s early trade after The Indian Express reported that Amazon India is in discussions with multiple players in the film and media distribution segment, including Mumbai-based movie theatre chain Inox Leisure for picking up stakes in them.

Later, the scrip traded 6.3% higher at Rs 321 at around 11.10 am (IST), while the benchmark BSE Sensex was up 56 points, or 0.11%, at 52,909 at around the same time.

“After the initial growth of the first six months last year, the OTT content business has not grown as fast as the company expected. There are three to four deals in this space being evaluated currently, including some distressed assets. Amazon India is in advanced talks with some of them,” a source close to the development told The Indian Express.

Inox Leisure is engaged in the business of operating multiplex cinema theatres. The company is in the business of film exhibition. It operates through theatrical exhibition segment. The company is also engaged in booking, providing a range of movies, reviewing movie schedules and offering a range of cinema food.

Promoters held a 43.63% stake in the company as of June 30. On the other hand, the public and others had 56.23% and 0.14% stake, respectively.

The smallcap firm had hit a 52-week high of Rs 358.55 on January 11, 2021 and a 52-week low of Rs 220.55 on July 30, 2020.