New Delhi, Mar 28 (IANS): Shares of multiplex firms PVR and INOX Leisure surged sharply on Monday after the announcement of merger of the two companies on Sunday.

At 1.28 p.m. on Monday, the shares of PVR traded at Rs 1,875, up 3 per cent, whereas INOX Leisure at Rs 519, up over 10 per cent.

As per reports, the shares of the two companies surged as much as 10 per cent and 20 per cent, respectively, in the opening session on Monday.

Film exhibition majors, PVR and INOX Leisure on Sunday announced merger and their Boards approved an all stock amalgamation of INOX with PVR.

Shareholders of INOX will receive shares of PVR in exchange of shares of the former at the approved exchange ratio, as per a statement.

Financial advisory firm Elara Capital has maintained a 'buy' call for both multiplex companies PVR and INOX Leisure.

The target price for shares are kept at Rs 2,375 and Rs 575, respectively, the financial advisory firm said in a note post the announcement of the merger.