Warburg Pincus Invests in India’s Movie Theaters
New York City-based private equity firm Warburg Pincus, LLC., has acquired a 14% stake in PVR Limited, India’s largest cinema chain headquartered in Gurgaon, for about $120 million. The stake was bought from PVR’s existing investors, private equity firm Multiples Alternate Asset Management and PVR’s founders, including chairman and managing director Ajay Bijli.
“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,” said Vishal Mahadevia, Warburg Pincus India managing director and co-head.
The Hollywood Reporter quotes a report by consultancy firm PricewaterCoopers, that says box-office revenue in India is estimated to reach $2.74 billion in 2020, up from $1.64 billion in 2015, growing at an average annual rate of 10.9 percent, even though India still remains a market with low screen penetration.