Eros screens a good show

Eros Media seems to be on a super hit run on the bourses today morning. The stock price surged up 11% to Rss.219 and figures amongst the top gainers on the BSE since the opening bell.

This new found love for Eros is on account of its announcement that Reliance Industries, through its subsidiary, have agreed to partner with Eros in India to jointly produce and consolidate content from across India.

The parties will equally invest up to Rs. 1,000 crores in aggregate to produce and acquire Indian films and digital originals across all languages.

But the main news which got the stock price going is that RIL is acquiring 5% stake or 32.5 lakh shares in Eros International Plc. These shares were acquired at $15 apiece, an 18% premium to the last traded price. The total acquisition amount would aggregate $48.75 million.

In addition, it was announced that Ms. Jyoti Deshpande, Group CEO and MD of Eros International Plc, the NYSE listed parent of Eros India, will be stepping down from her Executive role after more than 17 years in Eros Plc and move on to head the Media and Entertainment business at RIL as President of the Chairman’s Office. Ms. Deshpande will start her new role at RIL from April 2018, but will continue to remain as a Director on the Board of Eros India as well as Eros Plc. Mr. Kishore Lulla will resume his position of Group Chairman and CEO of Eros Plc.