Eros Intl., the Indian distribution and production company listed on London’s Alternative Investment Market, has announced that its wholly owned subsidiary Eros Intl. Media aims to raise rupees 3.5 billion ($75 million) through an initial public offering.
The Bollywood behemoth will use $60 million to acquire and co-produce Hindi, Tamil and other regional film rights and use the balance to fund future expansion.
Eros stated that the IPO issue is for less than 25% of the post-issue capital of the company. Currently, of 71.4 million equity shares, Eros Worldwide holds 69.6% and Indian company Eros Digital holds 30.39%, with the rest being held by individuals.
The company is also looking at a pre-IPO placement of up to $4.3 million with some investors.
In December, Eros signed a $25 million three-year term facility with Lloyds Banking Group replacing an existing short-term rolling $35 million facility from Citibank.
In the six-month period ending September, Eros posted a net profit of $10.2 million on a revenue of $73.5 million. The company has a debt of $45.5 million.
Eros holds distribution, homevideo, TV syndication, Internet and other digital new media rights for more than 1,000 Hindi, Tamil and other Indian language films, including helmer Sabbir Khan’s summer hit “Kambakkht ishq.”
Eros holds distribution, home video, TV syndication, Internet and other digital new media rights for more than 1,000 Hindi, Tamil and other Indian language films.