IPO Update: Eros International media limited

Full Entertainment for Investors too !

Eros International IPO is offering shares @ 158-175 to raise up to Rs. 350 crore. A quick look at the positives and concerns.

 

 

Positives

1. Eros has a content library of over 1000 films and the company is yet to milk these effectively.

2. Diversity and segmentation of revenue- Eros derives revenue from Theatre release of new movies, sale to channels and music rights. Further a large portion of revenue is generated from overseas releases which ensures good geographical segmentation.

 

Concerns

1. Failure to provide super hit movies in future may turn the tide.

2. Not competent to make its own movies. The only production “Aa dekhen Zara” was a big flop.

On valuations the issue is priced at a PE of 21 on the higher end which is in line with valuation enjoyed by peers such as UTV software. With good going of “Dabang” and few good movies lined up for release the stock is all set to provide full entertainment to investors on the stock markets too . I am applying with a view to book listing gains.

Current Grey Market Premium :  Rs. 35

Registrar : Link Intime

Issue Closes : 21-Sep-2010

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