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Carnival Cinemas is all set to raise Equity

Carnival Cinemas Equity

Carnival Cinemas, one of the largest Cinema chains in India with over 450 screens is in advanced stages to raise Equity. Carnival Cinemas is a company owned 100% by Dr. Shrikant Bhasi, always wanting to open more screens, but “the time wasn’t right until now”. The Pandemic outbreak, the multiple waves thereon and the shutdowns not only induced a question for Private Equity investors and for YES BANK to work around the debt, but also raised concerns for the future growth. Being a leveraged entity, it becomes necessary to find suitable investors for dilution of Equity and to look at a value partnership by the sole lender, YES BANK. The company had performed well, generating results for the financial year 2019-2020. Things look promising in this financial year 2022-2023 as well.

“This is what Carnival Cinemas always wanted.” There has always been value in the cinema business pre-covid or the post-covid phase. The Pandemic outbreak has been one of the main reasons for the setback. Carnival Cinemas should now be able to pay off all its liabilities and can open all its screens including 100 screens, which were semi capexed during the pre-covid times.

To raise funds, Carnival Cinemas worked with YES BANK, with whom they have a long-standing relationship, whereby the bank has always supported and believed in the business. YES BANK has started its process to take Equity and enable Carnival Cinemas to move towards its vision of 1000 screens.

An official from Carnival Cinemas who refused to be named stated, “We are the market leaders in tier III and tier IV markets and are the only mass cinema chain in India whose vision is to open and operate large number of screens. This debt restructuring would close within 60-90 days.”

A formal announcement may soon be made in the coming days.