Eros International Media hits record high on delisting buzz

Shares of Eros International Media has zoomed nearly 13% to Rs 498 on the Bombay Stock Exchange (BSE) on reports of delisting buzz.

According to reports, investor groups of Eros International Media have suggested delisting the company to stave off 'transfer pricing' and 'subsidy' concerns.

Reports stated that investor groups pointed out that NYSE listed parent has extended interest free loan of Rs 500 crore to the local unit towards production expenses.

A move to take Indian subsidiary private - either through a buyback or swapping shares with ADRs - would mitigate these concerns or make the structure more tax efficient, reports said.

Promoters Eros Worldwide FZ LLC and Eros Digital held 74.4% stake in Eros International Media end March 2015.

The stock opened at Rs 452 and touched a high of Rs 531 in the late morning trades on the BSE. At 11:55 AM, a combined total of around 10 lakh shares changed hands on the counter on the BSE and the NSE.