Share prices of several multiplex companies have been falling since the Maharashtra minister stated in the Assembly that there will be no ban on carrying outside food inside the cinema theatres in the state.
If implemented, the moviegoers will be free to carry outside food inside the multiplex from August 1, 2018.
The government also stated that the multiplex owners should be selling food products inside multiplexes at the maximum retail price (MRP) and should not charge any premium over it.
Since the announcement, the share price of PVR, India’s largest cinema exhibition company, tanked around 14 percent on July 13 and is currently trading at 16 percent lower than its Friday opening price.
Similarly, share prices of Inox Leisure and Mukta Arts are trading at 12 percent and 6 percent lower than their Friday opening prices, respectively.