Eros to float part of subsidiary

Overseas film distributor to list less than 25% of unit


NEW DELHI -- Eros International Media, a subsidiary of Eros International Plc, is planning to raise $77 million (3.5 billion rupees) via an initial public offering according to documents filed with the Securities & Exchange Board of India.

Eros said that the issue is for less than 25% of the post-issue capital of the company.

A pioneer in distributing Indian films overseas for over two decades, Eros was one of the first Indian entertainment companies to list on the Alternative Investment Market of the London stock exchange.

Eros plans to use $62 million from the proceeds of the issue to acquire and co-produce Indian film rights, primarily Hindi films, in addition to Tamil and other regional language films. The surplus amount will be used towards general corporate purposes including meeting future growth requirements.

Eros said it was also considering a pre-IPO placement of upto $4.4 million with certain investors

At present, of a total of 71.41 million equity shares, Eros Worldwide holds a 69.60% stake, while Indian company Eros Digital Private Ltd. holds 30.39%. The remaining is with individual investors.

For the financial year ending March 31, 2009, Eros International reported a consolidated net profit of $16.2 million on a total income of $139 million.
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