PVR Inox Sells Gourmet Popcorn Brand 4700 BC To Marico In A Rs 226.8 Cr Deal | All You Need To Know

PVR Inox-Marico Deal: PVR Inox has sold its entire investment in its subsidiary Zea Maize Private Limited (ZMPL) in an all-cash deal worth Rs 226.8 crore. ZMPL operates brands like 4700 BC, etc.

The divestment in ZMPL would help PVR INOX to unlock shareholder value, strengthen the balance sheet, and reallocate resources towards its core cinema exhibition business, the company stated in its press release issued on Monday, January 26.

PVR Inox shares closed 2.49% lower at Rs 931.85 per share on BSE with a market capitalisation of Rs 9,150.76 crore on Friday. The Indian stock market remained closed on Monday because of Republic Day celebrations.

"As 4700BC enters its next phase of growth, the transaction enables the brand to benefit from Marico's sharper FMCG focus, deeper distribution reach, and accelerated new product launches, while continuing to remain premium, modern, and innovation-driven," the company said in its BSE filing.

PVR Inox-Marico Deal

The PVR Inox-Marico deal was concluded in an all-cash deal worth Rs 226.8 crore. As per the firm's BSE filing, ZMPL's gourmet popcorn brand, 4700 BC, has emerged as one of the country's fastest-growing premium snacking brands, and it has successfully expanded its presence beyond movie theatres across modern retail, digital commerce, and institutional channels.

"We recognised the potential in 4700BC at a very early stage and supported the brand through its formative years. From a niche gourmet popcorn offering, it has grown into a nationally recognised premium snacking brand," stated Ajay Bijli, Managing Director, PVR INOX Limited.

The transaction is likel to help PVR Inox in boostig its profit, free cash flow and return ratios. The gourmet popcorn brand is likely to benefit from Marico's presence in the FMCG industry and its deeper distribution reach, and accelerated product launches.

"The investment in 4700BC aligns well with Marico's ambition to participate in fast-growing food categories through distinctive, future-ready brands. We see immense potential in 4700BC as a premium snacking brand with deep consumer connect and proven execution," stated Saugata Gupta, MD and CEO, Marico Limited. Axis Capital has acted as the exclusive financial advisor and Shardul Amarchand Mangaldas & Co were the legal advisor to PVR INOX for this transaction.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.