MUMBAI: AIM-listed movie studio Eros International has firmed up plans for a public float in India to ride the wave of a revival in the primary markets as capital overseas is drying up to fuel further growth.
The company said today in a regulatory filing to the London Stock Exchange that it would list Eros International Media Ltd, its wholly owned subsidiary company in India.
The company has appointed Enam, Kotak and RBS (Royal Bank of Scotland) to act on the proposed Indian IPO (initial public offering). Eros is expecting to complete the exercise by the end of this fiscal year.
Eros said it will not dilute more than 25 per cent equity in the company. “It is currently intended that any new funds raised by Eros India in the Indian IPO will not result in a dilution of the company‘s ownership in excess of 25 per cent,” it said.
Eros is riding high on the two major successes, Kambakkth Ishq and Love Aaj Kal, and other regional films including Me Shivaji Raje Bhosale Boltoy, Tera Mera Ki Rishta and Kandasamy.
Eros expects the fund raising to help a material reduction in the net debt by the financial year-end.
For the fiscal ending March 2009, the company posted a net profit of $40.83 million on an income of $156.7 million.
Eros International is the second AIM-listed entertainment company that is planning an IPO. Recently Hyderabad-based animation, gaming and VFX company DQ Entertainment announced its plans to list in India.
