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PVR Inox Shares Dip 2% After Karnataka Govt Proposes To Cap Ticket Prices To Rs 200

PVR Inox Shares Dip 2% After Karnataka Govt Proposes To Cap Ticket Prices To Rs 200

News1816-07-2025
Shares of PVR Inox declined 1.8% on the BSE on Wednesday, July 16, following a major announcement by the Karnataka government
PVR Inox Share Price: Shares of PVR Inox declined 1.8% to an intraday low of Rs 972.50 on the BSE on Wednesday, July 16, following a major announcement by the Karnataka government. The state has introduced new regulations under the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, which propose capping movie ticket prices at ₹200, inclusive of entertainment taxes.
The move is aimed at making cinema more affordable and accessible to a broader audience across Karnataka. The government's decision directly addresses long-standing complaints from moviegoers about high ticket prices, especially in multiplexes. As per the notification, all multiplexes and cinema halls in the state have been given a 15-day deadline to comply with the new pricing rule.
While the policy is expected to benefit consumers, it poses significant challenges for the business models of multiplex operators like PVR Inox. The regulation may force cinema chains to reconsider their pricing strategies, revise promotional campaigns, and explore alternative revenue streams such as food and beverage sales to offset potential losses from reduced ticket prices.
As one of India's largest cinema exhibitors, PVR Inox could face margin pressures in Karnataka, a key market. The company may also need to adapt its operational strategy to maintain profitability under the new regime.
In terms of stock performance, PVR Inox has faced considerable pressure over the past year. The stock is down 32.22% on a one-year basis and has declined 24.88% year-to-date. Over the past six months, it has fallen 8.75%. However, it has shown signs of recovery in the short term, gaining 4.66% in the last three months and 3.59% over the past month. On Tuesday, ahead of the announcement, shares of PVR Inox had closed 1% higher at Rs 989.95 on the BSE.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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