Multiplex stocks hog limelight as standoff ends

Do you remember my recommendations of Pyramid Saimira Theatres Ltd and Fame India Ltd, in last couple of months, amidst violent criticism from all quarters. Those who have bought these shares at that at the price of dirt must be feeling very happy and elated now.....

Thanks for all the appreciation mails you send me everyday.....

MUMBAI: Shares of multipex operators were back in the limelight after the long-standing row between them and Bollywood producers over revenue sharing came to an end as the two parties reached a deal.

According to media reports, the two parties reached a consensus over the rationalisation of revenue sharing for forthcoming films after about four months of negotiations.

Media reports suggested that the final settlement has been reached for a 50, 42, 35 and 30 per cent revenue sharing for the first, second, third and fourth week respectively for all movies and 52, 45, 38 and 30 percent respectively for all blockbuster movies that manage to collect more than Rs 17.5 crore at the six leading multiplex chains. The top multiplex chains in India comprise PVR, Big Cinemas, Inox, Fame, Cinemax and Fun.

At 10:20 am, shares of PVR hit the upper circuit limit of Rs 142, up 4.99 per cent, Adlabs Films soared 4.73 per cent to Rs 458.35, Pyramid Saimira rose 4.8 per cent to Rs 34.40, Cinemax India advanced 3.79 per cent to Rs 78.10 and Inox Leisure climbed 4.98 per cent to Rs 68.50.