NEW DELHI: Shares of leading multiplexes saw a sharp fall on Friday after reports said that the Maharashtra government has allowed moviegoers to carry their own food inside the movie theatres from August 1.
According to a report by CNBCTV18, Maharashtra Minister has said that they will act against multiplexes if they dont allow people to carry their own food.
Shares of PVR slipped as much as 12.39 per cent in the afternoon trade. At 02:41 am, the stock was trading 12.03 per cent lower at Rs 1,229.05 apiece on BSE.
Inox Leisure was trading 9.07 per cent down at Rs 229.50 apiece on BSE. Mukta Arts fell 1.61 per cent to trade at Rs 42.85 apiece.
Mukta Arts said it had not heard anything w.r.t carrying own food in multiplexes, and it will call this a ruling is a bit premature. The mulitiplex said the government will need to engage with multiplexes before taking such a call & if a ruling does come, it might be a precedent for rest of the country, the report added.
On Maharashtra governments move, Deepak Jasani of HDFC Securities, said that it one of the key risks which are faced by the businesses in India. "Suddenly out of the blue you have some announcement which either increases your cost dramatically or reduces your revenue potential. So, this is something which investors will have to take into account while giving price to earning valuation."