Eros IPO Looks Favourable

more images

more images

MUMBAI, INDIA (Gaea Times.com)- Eros International Media a leading company in the entertainment world is planning to raise capital by entering the Capital market. The Eros IPO seeks to raise 350 crore at the price bands of Rs. 158 - 175. The capital raised will be used for the co-production of films in Indian languages. The Company’s business is to produce or co produce film content and look after their distribution. The company has three avenues through which their revenue comes in. The primary source being the theatrical release of films in India and overseas, secondly they acquire film content from third parties and lastly they earn by selling their content to channels in various formats.

Eros International Media is a company which has been showing steady growth over the years. Their total income has grown at a CAGR of 58% to Rs. 655 crore while the net profit of the company has grown at a compounded rate of 150% annually in the last four fiscals. The majority of the company’s earnings are a result of its overseas activities and this going to continue in the long run. Therefore for domestic investors the company offers to be favorable as it will co produces films in India and won’t be making a huge loss if the films did not work out. Moreover the company has a list of film releases in India in the coming months, Anjaana Anjaani and Desi Boyz in Hindi being a few of them. A broking house is already seeing the Eros IPO as a profitable investment.

Angel broking has given a go ahead to investors by asking them to subscribe to the Eros IPO or initial public offering. There analysis shows that the shares are being offered at a reasonable price and the earning of Eros International Media will go up at a good rate over the next two fiscal years.