Cineline India Shifts Focus Post Debt Clearance with Hotel Sale

Cineline India Ltd, a cinema chain, plans to expand its film exhibition business after becoming net debt-free. The company sold its Hyatt Centric hotel for Rs 270 crore, eliminating its debt. With 77 screens across six states, Cineline plans further growth by reinvesting free cash flow and expanding screen count.

Cineline India Ltd, a renowned city-based cinema chain, is refocusing on its film exhibition business following its achievement of a net debt-free status. This financial turnaround comes after the company successfully monetized its hotel asset, the Hyatt Centric in Goa, fetching a deal worth Rs 270 crore.

The transaction with Sparsh Vidhyut not only allowed the repayment of Rs 120 crore in debt tied to the hotel asset but also facilitated the clearing of the company's entire outstanding debt of Rs 108 crore in the film exhibition division. CEO Ashish Kanakia emphasized that having a clean slate will catalyze the company's growth and market expansion.

Currently managing 77 screens across 21 properties in six states under the MovieMAX brand, Cineline has also secured agreements for an additional 82 screens. The company has already monetized non-core real estate assets totaling Rs 351 crore, including the sale of Nagpur's Eternity Mall and two commercial spaces in Mumbai.

(With inputs from agencies.)