AZB and JSA lead on L Capitals investment in PVR

L Capital Eco, a subsidiary of private equity fund L Capital Asia, has signed an agreement to invest Rs. 108 crore ($19.26 million) in PVR’s cinema exhibition and in-mall entertainment business..AZB & Partners advised L Capital with a team led by Partner Vinati Kastia along with Senior Associates Bharat Bahadur and Ritika Rathi..J. Sagar Associates advised PVR with a team led by Partner Sidharrth Shankar..Under this agreement, L Capital will invest Rs 57.7 crore through the preferential allotment route in PVR for a 10 per cent stake. L Capital will also make an initial investment of Rs 50.1 crore for a joint venture with PVR to invest in various in-mall entertainment formats, gaming, food and leisure formats..According to ET, following this transaction, PVR’s Ajay Bijli’s shareholding in the company will come down to just over 40%..With the help of L Capital, PVR will bring in another half a dozen new entertainment concepts that could include a coffee chain, a smoothie concept, popcorn concept and a fitness centre to India. PVR currently has one such business, BluO, which runs a bowling alley. PVR cinemas is also expanding at the national level and will add about 70 screens this year in cities like Delhi, Mumbai, Chennai and Bangalore at an investment of around Rs. 120-130 crore..In March 2012, L Capital, the private equity arm of the world’s biggest luxury group, Louis Vuitton Moet Hennessy (LVMH), had bought 8 percent in Fabindia from Wolfensohn Capital Partners. L Capital had invested Rs. 150 crore to acquire stake in Fabindia.