Cinemax looking for partners to fuel growth

Cinemax-IndiaCinemax India Ltd., the chain of multiplexes is now looking for partners for fueling its growth. Private equity is the specific area where it is seeking for investors.

It expects to raise Rs. 150 crore and the corpus will be used for aggressive growth plans and consolidation.

Cinemax is a Mumbai-based firm which has 94 screens in major cities. A person familiar with the development said that it wants to expand across India.

The source said that while the final decision regarding the funding has not been taken yet; it is expected that it will be done through structured private equity transaction. Instruments like debentures are also going to be used looking at the low market capitalization that the firm has.

Cinemax is aiming to double its operations in next two years and is looking for someone who is ready for a higher valuation deal.

For the deal, Enam is acting as the advisory and is looking for the most beneficial debt equity combination.

After the announcement, the stock of Cinemax was down by 4.93 per cent and closed at Rs. 59.75.

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