Eros International Media Limited, part of the media and entertainment firm Eros Group, is planning to raise Rs 280 crore via an IPO. Though the company is silent on the number of shares offered and their price in the public offering, VCCircle learns that Eros International could be looking at a market-capitalisation of Rs 1,200-1,500 crores.
As per the DRHP, Eros intends to use the money to acquire and co-produce film projects in Hindi, Tamil and other regional language. The company is acquiring a SRK-starrer movie from Red Chillies Entertainment; co-producing a Saif Ali Khan movie with Illuminati Films; co-producing a Ranbir Kapoor-starrer movie with Nadiadwala Grandson Entertainment and a few other films in Marathi and Tamil language.
Eros International acquires films from third-parties, through co-productions and occasionally, through our own productions. After acquiring, Eros exploits the film content through multiple formats such as theatres, home entertainment (DVD, VCD), cable & satellite rights and new media formats. For instance, Eros is said to have paid Rs. 75 crores to acquire the worldwide rights for ShahRukh Khan starrer – Om Shanti Om. It did not produce or co-produce the movie.
Eros has given box-office hits like Love Aaj Kal, Om Shanti Om, Partner and Cheeni Kum. The Eros India Library includes over 1,000 Indian films.
During FY2009 Eros International released 19 Hindi and 75 regional language films. The company earned a net profit of Rs 74.7 crore on revenues of Rs 627.8 crore in FY2009, compared to Rs 42.7 crore on revenuers of Rs 490.2 crore in FY2008.
Eros Worldwide (69.6%) and Eros Digital Private Ltd. (30.4%) are the major shareholders in Eros International Media Limited. Eros Worldwide is a 100% subsidiary of LSE-listed Eros Plc, while Eros Worldwide holds 99.9% shares of Eros Digital Private Ltd. Eros International Plc has a market capitalization of Rs. 1,350 crore. Sunil Lulla and Kishore Lulla are the promoters of Eros Group.
Enam, Kotak Mahindra, Morgan Stanley and RBS Equities are acting as the Book Running Lead Managers in the offering.