Eros International Media ltd
Issue Period: Sep 17th- Sep 21st, 2010
Face Value: Rs 10 per Equity Share
Price Band: Rs 158-Rs 175 per share
Lot Size: 40 Equity Shares
Issue Size: Rs 350 crores
Book Running Lead Managers
Enam Securities Pvt Limited
Kotak Mahindra Capital Company Ltd
Morgan Stanley India Company Ltd
RBS Equities (I) Ltd
Objects of Issue
1. Acquiring and co-producing Indian films, including primarily Hindi language film as well as cartain Tamil and other regional language films.
2. General Corporate Purposes
Eros International Media Ltd is part of the Eros Group, which has global presense in Indian media and entertainment arena. The Eros Group operates on a vertically integrated studio model controlling content as well as distribution & exploitation across all formats globally, including cinema, digital, home entertainment and television syndication. Established in 1977, Eros has over three decades of market leadership in creating a global platform for Indian cinema. The group has an enviable distribution network that spans across 50 countries and over 27 dubbed foreign languages, with offices in India, UK, USA, Dubai, Australia, Fiji, Isle of Man and Singapore. Eros has built a successful business model by combining the release of a portfolio of over 70 new films every year with the exploitation of a valuable film library of over 2000 film titles.
In 2006, Eros plc, the holding company of the Eros Group, became the first Indian media company to obtain a listing on the Alternative Investment Market (AIM) of the London Stock Exchange.
EROS sources content primarily through acquisitions from third parties and through co-productions and, occasionally, through their own productions. They acquire films from third party producers at various stages of a film‘s production for an agreed contractual value, and also co-produces films from inception with certain producers for a pre-agreed fixed budget. EROS distributes end-to-end Indian film content within India, Nepal and Bhutan through multiple formats such as theatres, home entertainment, principally in the form of DVDs, VCDs and audio CDs, and television syndication, which primarily involves licensing the broadcasting rights to major satellite television broadcasting channels, cable television channels and terrestrial television channels. Distribution is also done via digital new media such as mobile ring tones, wallpapers and downloads, IPTV, DTH and other internet channels and to airlines for in-flight viewing.
The EROS Group works at each stage of the entertainment industry
-(Eros International Media Ltd),Film Acquisition and distribution
- (Eros International Films Pvt Ltd),Production /Co-Production
-(Eros Music Publishing Pvt Ltd),Music Publishing
-(Big Screen entertainment Pvt Ltd),Co Production
-(Copsale Limited),Film Aquisition Cpy
-(EyeQube Studio Pvt Limited), Visual Effects Studio
-(Eros Animation Pvt Limited),Animation Studio,yet to commence operations
The company's closest comparible competitor in the market is UTV Software Communications Limited.
Industry Overview:-The Indian media and entertainment industry which principally comprises film, television, printed media, radio and music was estimated to be worth Rs. 584 billion during calendar year 2008 and is projected to grow at a CAGR of 12.5% between 2009 and 2013 to reach Rs. 1,052 billion. The FICCI-KPMG Report 2009 estimates that the Indian film industry is one of the largest in the world, with over 1,000 films released annually and over three billion tickets sold in Indian cinemas each year.