Eros International Media hits record high on delisting buzz

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Eros International Media spurted 17.91% to Rs 521.65 at 11:12 IST on BSE on reports of delisting buzz.

Meanwhile, the S&P BSE Sensex was down 122.91 points or 0.46% at 26,645.58.

On BSE, so far 1.40 lakh shares were traded in the counter as against average daily volume of 39,900 shares in the past one quarter.

The stock hit a high of Rs 530.85 so far during the day, which is a record high for the counter. The stock hit a low of Rs 452 so far during the day. The stock had hit a 52-week low of Rs 188 on 5 June 2014.

The stock had outperformed the market over the past one month till 5 June 2015, surging 9.53% compared with Sensex's 2.45% fall. The scrip had also outperformed the market in past one quarter, rising 3.92% as against Sensex's 9.1% fall.

The mid-cap company has equity capital of Rs 92.52 crore. Face value per share is Rs 10.

According to reports, investor groups of Eros International Media have suggested de-listing 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 and 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.

Eros International Media's consolidated net profit rose 25% to Rs 51.74 crore on 42.7% growth in net sales to Rs 449.05 crore in Q4 March 2015 over Q4 March 2014.

Eros International Media is a global player within the Indian media and entertainment arena. It operates on a vertically integrated studio model controlling content as well as distribution & exploitation across multiple formats globally, including cinema, digital, home entertainment and television syndication.

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