Shares of Eros International Media zoomed nearly 11% after the Mukesh Ambani-led Reliance Industries picked up 5% stake in the NYSE-listed parent company Eros International Plc. Reliance Industrial Investments and Holdings Ltd, a wholly owned subsidiary of Reliance Industries Ltd proposes to subscribe to 32,50,000 ‘A’ ordinary shares at $15 per share for cash aggregating to $48.75 million, translating to 5% equity stake on a fully diluted basis of Eros International Plc, RIL said in a regulatory filing. Following the development, the stock of Eros International Media surged as much as 10.77% to a day’s high of Rs 219 on BSE.
A heavy trading volume was witnessed in the shares of Eros International Media, as at 10:10 am, more than 26 lakh equity shares exchanged hands on both NSE and BSE with about 23 lakh on NSE alone. “Reliance Industries Limited (“RIL”), through its subsidiary, and Eros International Media Limited (“Eros India”) announced that they have agreed to partner 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,” RIL said in a press release.
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