PVR Inox Shares Fall 8% After Report Of Internal Probe Into Alleged Kickback Claims Against Executive

Shares of multiplex chain PVR Inox dropped 8% on Monday after a report alleged that the company had initiated an internal investigation into claims of kickbacks involving a senior executive associated with cinema expansion projects.

The stock was trading at Rs 1,167 per share around 12:50 pm, marking its lowest level since March 2. The decline followed a report by The Economic Times that said PVR Inox had asked Pramod Arora, its chief executive officer for growth and investment, to leave in April after the internal probe.

Internal probe linked to cinema expansion projects

According to the report, allegations involved payments allegedly received from developers involved in building cinema properties. Arora was reportedly closely involved in expanding PVR Inox’s presence in Tier II and Tier III cities through asset-light business models.

These initiatives included franchise-owned, company-operated (FOCO) cinemas and the SMART/Smart Screen formats, which focused on creating smaller, digital-first multiplexes aimed at audiences in smaller cities and towns.

The company reportedly became aware of the allegations in April, following which Arora and some other employees were asked to leave with immediate effect.

A declaration signed by Arora reportedly restricted him from joining competing cinema chains and contacting existing PVR Inox vendors. The agreement also included provisions for possible legal action if the restrictions were violated.

PVR Inox has not publicly commented on the allegations.

Buyback plan supports investor confidence

The share decline comes soon after PVR Inox’s board approved a share buyback proposal on August 31. Under the plan, the company will repurchase up to 20,68,965 equity shares at Rs 1,450 per share, representing a premium of around 20% over the August 31 closing price.

The buyback, valued at up to Rs 300 crore, will be conducted through the tender offer route and represents 2.11% of the company’s paid-up equity capital.

Brokerage JM Financial retained its “ADD” rating on the stock and increased its 12-month target price to Rs 1,270 from Rs 1,130. The brokerage said the buyback reflected confidence in the company’s balance sheet and highlighted a strong content pipeline.

It also noted that PVR Inox’s financial position improved, with the company reporting net cash of Rs 81 crore at the end of June 2026 compared with net debt of Rs 162 crore at the end of March 2026.