PVR Inox shares surge 7% on clarification over allegations

Shares of PVR Inox Limited climbed 7% on Tuesday after the cinema chain operator issued a clarification regarding allegations of corporate impropriety. The company stated that a preliminary examination triggered by anonymous complaints from certain employees had not revealed any evidence substantiating kickback claims. The statement appeared to ease investor concerns about potential governance issues at the multiplex operator, which operates hundreds of screens across India. The company also addressed the exit of a senior executive, identified as Arora, providing context around the leadership change. Market analysts said the clarification helped restore confidence in the company's management practices and internal controls. PVR Inox, formed through the merger of PVR Limited and Inox Leisure in 2022, operates the largest cinema chain in the country. The company said it remained committed to maintaining high standards of corporate governance and would continue investigating the allegations through appropriate channels.