Shares of PVR Inox, India's leading multiplex operator, experienced a significant decline of over 8% in Monday's trading. The sharp fall is attributed to two primary factors: an internal investigation into alleged kickbacks involving a former senior executive and the recent passing of the record date for the company's share buyback program.
Allegations of Kickbacks Surface
According to a report by The Economic Times, PVR Inox asked a senior executive to resign in April following an internal probe. This investigation reportedly uncovered alleged kickbacks received from developers involved in the construction of new cinema properties. The report suggests these payments occurred over several years and could amount to as much as Rs 200 crore. The allegations reportedly center on Pramod Arora, the company's former chief executive officer for growth and investment.
PVR Inox has not yet publicly confirmed or denied the reported figure of Rs 200 crore, and Business Today has not independently verified these claims.
Impact of Buyback Record Date
The stock's decline also coincided with the September 4, 2026, record date for PVR Inox's share buyback. This date was critical for shareholders to be eligible to participate in the buyback offer. The passing of this date means investors who acquired shares specifically to qualify for the buyback may no longer have an incentive to hold them, potentially contributing to increased selling pressure. However, the exact extent of this impact on Monday's trading cannot be definitively established without specific market data.
Brokerages Maintain Positive Outlook
Despite the recent stock volatility, several prominent brokerages continue to hold a positive view on PVR Inox. JM Financial, for instance, reiterated its 'ADD' rating and raised its 12-month price target to Rs 1,270 from Rs 1,130. The brokerage cited the buyback as a sign of confidence in the company's financial health and also increased its valuation multiple for PVR Inox, pointing to a robust content pipeline and an improved net cash position.
Similarly, Nuvama Institutional Equities maintained its 'BUY' rating, raising its target price to Rs 1,640 from Rs 1,620. Nuvama anticipates a strong financial year 2027, driven by a healthy lineup of both Bollywood and Hollywood film releases.
PVR Inox's Market Position and Future Plans
PVR Inox was formed in 2023 through the merger of PVR and Inox Leisure, solidifying its position as India's largest multiplex chain. As of late August 2026, the company operated 1,786 screens across 356 properties in 113 cities in India and Sri Lanka. The company has ambitious plans to add another 1,000 screens over the next five years, with franchise-led expansion expected to play a significant role in this growth strategy.