Eros International puts up good show

The market is very happy with Eros International today and they have an activist shareholder of the company to thank for. The company had announced a $50 million plan to launch a movie and music channel and a likely buyout of the B4U network. But a 3% stake holder, Knight Assets strongly opposed the plans and instead urged the company to focus back on its core business and ErosNow, its digital platform for viedo-on-demand like Netflix. Knight Assets said the company, with its 30% share of Bollywood box office, must accelerate customer acquisition for its Netflix-style subscription driven digital platform ErosNow. With internet penetration on the rise, this form of digital entertainment will be the next game changer.

There is also a buzz that the company is looking at the option of delisting itself from the Indian bourses and this could also be a major reason for the flutter.

Meanwhile, the company is basking in the over Rs.100 crore collection it made on Tanu Weds Manu Returns.

The stock is currently up almost 6.5% at Rs.470.75 with an intra day high of Rs.480. Volumes are at some 34,000 shares being traded. Its 52-week high stands at Rs.494.