NEW DELHI: Shares of multiplex players jumped up to 7 per cent on Wednesday after the Maharashtra government filed an affidavit at the Bombay High Court, saying it does not deem it necessary to interfere with the ban on outside food in multiplexes.The state government contended that it may create chaos or security issues.Inox Leisure climbed 7.27 per cent to Rs 241.90 on the BSE.
PVR added 4.82 per cent at Rs 1,283.15."We believe that the stance by the Maharashtra government is positive for multiplexes and reiterates the unavailability of allowing outside FB.
Also, this would provide a strong reference point to other state governments," IDBI Capital said in a note.The brokerage has maintained its buy rating on PVR with a target of Rs 1,406 (based on EV/Ebitda of 13 times FY20 earnings.
For Inox Leisure, the brokerage has a target of Rs 300 based on EV/Ebitda of 10 times FY20 earnings.According to a PTI report, the affidavit said it does not want to interfere with the restrictions.
Although there is no specific provision in the Maharashtra Cinema (Regulations) Rules 1966 to prohibit viewers from taking their own food items or water inside, as per the opinion of the director general of police, carrying own food may create chaos and may lead to security issue, the affidavit said.The affidavit further said it will direct multiplexes and cinema halls to provide drinking water free of charge, and sell food and beverages at a price not exceeding the maximum retail price.