Mumbai: Mumbai-based cinema exhibition chain Carnival Cinemas is in the initial stages of raising equity of Rs 400 crore, as per a report by Hindi Businessline. Carnival Cinemas is the second-largest theatre chain after PVR-Inox with 450 screens present nation-wide.

The cinema chain is in talks with its sole lender Yes Bank as well as public and private equity funds to raise money to expand to another 118 screens. The entity is expected to make a formal announcement of the fund raise in 60-90 days.

The company owned by Dr. Shrikant Bhasi, always had plans for further expansion, especially after the record revenues of 2020. They have waited for the resolution of the pandemic before introducing private equity investors.

According to a source, “To raise funds, Carnival Cinemas worked with Yes Bank, with whom they have a long-standing relationship, whereby the bank has always supported and believed in the business. Yes Bank has started its process to take equity and enable Carnival Cinemas to move towards its vision of 1,000 screens.”

An official from Carnival Cinemas who refused to be named stated, “We are the market leaders in tier III and tier IV markets and are the only mass cinema chain in India whose vision is to open and operate a large number of screens. This debt restructuring would close within 60-90 days.”