World · India Bureau
PVR Inox shares tumble 8% after executive exits over kickback probe
The multiplex operator's stock suffered its steepest intra-day decline in six months following revelations of an internal investigation into alleged impropriety. A senior executive was asked to step down in April over suspected kickbacks linked to cinema property development.
LSN India ·
PVR Inox Limited's shares plummeted 8% during intra-day trading, marking the sharpest single-day fall for the cinema chain in the past six months. The sharp decline came as details emerged of the company's internal investigation into alleged kickback payments received from developers involved in constructing cinema properties.
According to reports, the multiplex operator initiated the investigation after discovering potential irregularities in its dealings with property developers. A senior executive was subsequently asked to exit the company in April following the probe's conclusions.
The development has raised governance concerns among investors at a time when the exhibition sector continues its recovery from pandemic-related disruptions. PVR Inox, which controls a significant portion of India's cinema screens through its merger, has not yet issued an official statement addressing the allegations or providing details about the executive's departure.
The incident underscores ongoing scrutiny of corporate practices within India's entertainment and real estate sectors, where such construction-related arrangements have occasionally come under regulatory and investor examination.