Eros International Media IPO Review

by Rajesh Narayanan · 2 Comments

Eros International Media is entering the capital markets to raise Rs. 350 crore through an issue of 2cr equity shares.The main objective of this issue is for acquiring and co-producing Indian films and general corporate purposes. This company is part of the Eros group which has been in the entertainment business for over three decades.

The company is well poised to tap the opportunity presented by Indian Media and Entertainment Industry driven by rising regionalization and digitization through new distribution platforms like Digital Cable, DTH & IPTV. Distribution and sale of media content online also offers a huge potential for Eros.

Details of the issue:

Face Value: Rs. 10 Per Equity Share.
Issue Price: Rs. 158 - Rs. 175 Per Equity Share.
Market Lot: 40 Shares.
Listing At: BSE, NSE.
Issue Date: Sep 17, 2010 - Sep 21, 2010.

Eros International Media is currently valued at 18 x-19 x on FY10 EPS of Rs 8.8 and Rs 9.1 based on the price band of Rs 158-175, which is cheaper than that of UTV’s 41.6x and Shree Ashtavinayak’s 96.1x FY10 EPS. Considering the future growth prospects of Indian film industry, valuable content library, medium to long term investors can apply for this issue, which could give good listing gains too.

If you enjoyed this article, please consider sharing it!