Shares of UFO Moviez jumped on Qube Cinema deal.
The stock surged as much as 10.4 per cent to Rs 478.75, its biggest intraday percentage gain since January 23.
The company had said on Wednesday it would merge with Qube Cinema Technologies Pvt Ltd.
The merger will lead to a significant increase in value proposition of UFO Moviez's in-cinema advertisement business, Urmil Shah at IDBI Capital said.
UFO Moviez, a digital cinema distribution, will have over 98 per cent market share post merger in terms of virtual print fee (VPF) revenue, the analyst added.
The stock remains on IDBI's high conviction buy with a target price of Rs 640. Up to Wednesday's close, the stock had risen about 5 per cent this year.
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