Cinema chain operator PVR Ltd announced that it would raise Rs 1.2 billion through its wholly-owned subsidiary, PVR Pictures.

The company said that PVR Pictures has already signed up agreements with ICICI Venture Funds Management Company and JPMorgan Global Special Opportunities Group, one of JPMorgan Chase Bank N.A.’s private equity arms for funding its growth plans.

This is one of the most substantial private equity investments in the Indian film and entertainment segment in recent years and it shows the strong confidence ICICI Venture and JPMorgan have in the company’s effetive business model, management know-how and the industry prospects.

ICICI Venture Funds Management Co Pvt Ltd and JP Morgan Global Special Opportunities Group will each invest Rs 600 million.  

Ajay Bijli, managing director, PVR, said, “It is a matter of great pride for us that the two leading private equity funds have reposed faith in the business model and management team of PVR Pictures. we are confident that the equity partnership with JPMorgan and ICICI Venture will help us rapidly realize our ambition of making PVR Pictures one of the leading companies in the content production and distribution space in Indian market.”

The deal will allow PVR Ltd to turn into a fully integrated film and entertainment company.

PVR Pictures plans to raise its film productivity to 8-10 by the coming year from 4-5 this year.

The company’s first movie production was ‘Taare Zameen Par’, co-produced with Aamir Khan Productions Pvt Ltd.

At 2:25 p.m., the company’s shares gained 7.7% to trade at Rs 180.70 on the Bombay Stock Exchange (BSE).