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Eros - Indian subsidiary IPO 26.5x oversubscribed

October 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • EROS
  • Price:
  • 256p
Trading is expected to get underway in Eros International Media Limited (EIML), the Indian arm of Eros, on the Bombay Stock Exchange on 6 October. This follows a fundraising that has raised Rs 3.5bn (US$75m) for the company at Rs175 a share. That is the top end of pricing and it didn’t stop the issue being 26.5x oversubscribed. The placing values EIML at Rs 16bn and leaves Eros with c.80% stake in the business.EIML owns various rights to over 1,000 predominantly Hindi films and it will use the new money to acquire and co-produce more films, with a slate of big releases already on the way for this year and next. In terms of the ongoing relationship between EIML and Eros, Eros will buy the entire international rights for each film ...

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