Inox, Cinemax shares zoom on deal rumours

MUMBAI: Multiplex chain operators Cinemax and Inox Leisure found new life on the bourses as they jumped over 10 per cent today on the back of rumours that they were attracting equity deals.

As the market speculated of a private equity deal, shares of Cinemax rose 11.73 per cent to close Monday at Rs 62.85 on the BSE. A total of 0.79 million shares were traded on BSE worth Rs 49.41 million.

“The market reacted to a speculation that Cinemax would raise capital through a PIPE (private investment in public equity) deal,” a media analyst at a leading broking firm said.

Cinemax, however, denied such rumours. “There is no private equity deal happening now,” said Cinemax CEO Sunil Punjabi.

Meanwhile, Inox Leisure stock jumped 14.65 per cent to close the day at Rs 74.75. A total of 2.81 million shares were traded on BSE worth Rs 207.04 million.

“The market buzz is that Reliance ADAG is buying out Inox. The scrip gathered steam,” said a fund manager.

Reliance MediaWorks CEO Anil Arjun, however, said he had no knowledge of a buyout deal.