Eros Share Discussion Threads

[rivaldo] 07/11/2013 13:39

Cheers eacn, appreciated.

Looks like some selling today by those who can't or won't take US-quoted shares in their portfolios.

[eacn] 07/11/2013 12:49

My understanding is that the de-listing from AIM will occur at the close tomorrow. There will therefore be an overlap from 14:30 until 16:30 and during this period the shares will be traded on both the NYSE and AIM.

The 1 for 3 consolidation will occur prior to the NYSE listing. The consolidation involves swapping ordinary shares for new A ordinary shares, and it is the A ordinaries that will be traded on the NYSE.

There is no point removing shares from the Jersey register until the consolidation has taken place. After that you can submit a request to remove your shares from CREST, then remove them from the Jersey register and have them transferred to the DTC in the US. This is best done by your broker since to deposit the shares in the DTC you need to be a DTC member.

Trading on NYSE is T+3, so in theory if your broker gets its skates on and is a DTC member you could sell stock in NY on say Monday and the re-registration with the DTC should be complete by Thursday. However, I very much doubt that most UK brokers will move that fast.

No doubt the company's advisors intended it to be this way, because by delaying transfers they can avoid a wave of selling by UK investors immediately post flotation in NY, allowing the stock to get off to a good start with limited organised buying.

[czar] 07/11/2013 11:36

zho it certainly looks like they will still be on AIM tomorrow afternoon and on NYSE from 2.30 pm. That does seem unlikely to me but who knows. Anyway I reckon these will fly in the US, we will soon see.

[zho] 07/11/2013 11:02

tux223

>>DAK will we get an overlap period during which EROS is traded both in London and on NYSE? Otherwise I'm a bit alarmed at TD Direct advising that it might be as long as six weeks before we're able to sell shares held in their accounts.>>

Stocktrade are telling me that clients should be able to trade shortly after the NYSE listing. I should get something definitive later today.

[rivaldo] 07/11/2013 09:06

That's a decent article. Good to see they're optimistic about the IPO - but they completely fail to spot the digital aspects to EROS which make it so appealing.

For example, there's this news today:

hxxp://www.mediamughals.com/News/1/1/Article/12720/Eros_Now_provides_content_exclusivity_to_its_subscribers!.htm

"Eros Now provides content exclusivity to its subscribers!
November 07, 2013
By: MediaMughals

Eros Now, the dedicated online entertainment platform of Eros International, a leading global media company in the Indian film entertainment industry has partnered with UTV and Viacom for content pertaining to movies, music videos etc. Thus, providing exclusive content to their users on a subscription basis, to add to its already widespread list of Bollywood hits.

With brilliant movies like Grand Masti, Lootera, Shootout At Wadala, Barfi, Raanjhanaa and more online premieres over the past few weeks, the entertainment mogul has established a very strong base amongst Bollywood lovers all over the world. Additionally, the online channel added 100 more films to their library, thus remaining loyal to offering a variety in content across different genres. Upcoming releases like 'Yeh Jawaani Hai Deewani', 'Phata Poster Nikhla Hero' & more are another additional incentive for users to sign up with Eros Now today!

Speaking on the development, Rishika Lulla Singh, CEO Eros Now said, "With Eros Now, we have succeeded in developing a service that engages a new digital generation of South Asians globally and deliver unlimited movies to them at a minimal cost. Our tie-up with UTV and IndiaCast reiterates our commitment to providing top grossing Bollywood movies to our subscribers. The platform is a one-stop shop for entertainment; showcasing a whole host of blockbusters - spoiling our viewers for choice".

Eros Now is the ultimate destination for Indian entertainment offering thousands of movies, music videos and audio tracks on demand. Instantly access online, on tablets and on mobiles through the Eros Now app available for Apple, Android & Amazon devices. Movie & music lovers now have easy & straight-forward access to high quality entertainment in Hindi, Punjabi & Tamil, all ad-free. All you have to do is logon to www.erosnow.com or download our app to enter the world of uninterrupted entertainment - anytime, anywhere!"

[boonboon] 07/11/2013 07:50

Eros International Offering Is Pure Bollywood
Nov 7 2013, 00:06 by: Don Dion |


Eros International PLC (EROS), a leading firm in the Indian film industry that co-produces, acquires and distributes Indian films worldwide, plans to raise $200.0 million in its upcoming public offering. The shares already trade in London.

The Secaucus, New Jersey-based firm will offer 12.5 million shares at an expected price range of $15-$17 per share. If the IPO hits the midpoint of that range at $16 per share, EROS will command a market value of $818 million. (See F-1)

EROS filed on March 30, 2012.
Lead Underwriters: BofA Merrill Lynch, Deutsche Bank Securities, UBS Investment Bank
Underwriters: Credit Suisse Securities LLC, EM Securities LLC, Jefferies LLC

Summary
EROS is engaged in the acquisition, co-production, and distribution of Indian language films to global audiences; the firm has aggregated rights to over 2000 films, along with some 700 films for which it holds only digital rights. The firm has distributed a portfolio of 230 new films over the past three fiscal years, including 26 in the six months ended September 30.

The firm achieves multiple revenue streams through new film distribution via theatrical, television and digital channels, along with library monetization. The firm's primary market for Hindi-language films is in India itself, where the firm released two of the ten top grossing Hindi language films in 2012; the firm also targets consumers in over fifty other countries internationally.

Valuation
EROS offers the following figures in its F-1 balance sheet for the six months ending September 30, 2013:

Revenue: $84,987,000
Net Income: $11,642,000
Total Assets: $802,895,000
Total Liabilities: $318,182,000
Stockholders' Equity: $440,659,000

EROS' total revenues increased from $206.5 million in fiscal 2012 to $215.3 million in fiscal 2013. EBITDA decreased from $56.2 million for fiscal 2012 to $48.8 million for fiscal 2013. The firm's net income decreased from $43.6 million for fiscal 2012 to $33.7 million for fiscal 2013.

Business
EROS must compete with other entertainment firms, many of which have been attracted to India by its growing film industry. Major international players including Sony Pictures (SNE), Viacom (VIAB), The Walt Disney Company (DIS) and Warner Bros. (TWX) have turned increased attention towards India, and as the budgets of the Hindi and Tamil films that EROS trades in continue to increase, the firm may find it difficult to keep up with its better-funded competitors.

Management
Group Chief Executive Officer and Managing Director Jyoti Deshpande has been with EROS since 2001, with a brief hiatus in 2011 and 2012. Ms. Deshpande has over 2 years of experience in Indian entertainment and media, and holds a degree in Commerce and Economics and an MBA from Mumbai University. Chairman Kishore Lulla has over 30 years' experience in media and film, and served as CEO during Ms. Deshpande's brief absence. He is a member of the British Academy of Film and Television Arts and is a board member for the School of Film at UCLA.

Conclusion
We are cautiously optimistic on this company and would recommend that aggressive investors consider participating in this offering. We expect the offering will come at a discount pegged to the existing shares trading in London.

The firm has seen consistently increasing revenues over its history, but its income has dropped significantly in the past three years; moreover, EROS is significantly affected by the expansion of film piracy. We also are concerned about the amount of the firm's cash and contracts that are subject to the wild fluctuations of the Indian rupee. However, the firm seems to be achieving significant successes with its films and television, with box office hits in India and a new contract with HBO Asia.


hxxp://seekingalpha.com/article/1814912-eros-international-offering-is-pure-bollywood?source=google_news

[napoleon 14th] 07/11/2013 07:12

I'll give it a month in NYSE or so;
MHO is the same as Rivaldo's, esp. if the bull run continues.
US$ 20 would be nice, maybe more?

scsw oct'13:
"The shares were a NAP tip for this year at 237p and also in 2011 at 143p based on this event coming to fruition and the shares still continue to trade at a yawning discount to US peers. It's been a while coming; continue to hold."

[tux223] 06/11/2013 19:14

DAK will we get an overlap period during which EROS is traded both in London and on NYSE? Otherwise I'm a bit alarmed at TD Direct advising that it might be as long as six weeks before we're able to sell shares held in their accounts. Six weeks is plenty of time for a spike high and a collapse.

[speedsgh] 06/11/2013 14:01

I do hope you're right, riv. Rightly or wrongly, and as painful as the last 3 or so years have been for me with EROS, I have decided to stay the course with this one + see what transpires once the switch happens. Knowing my luck there will be a nuclear strike in the next few days which will take EROS + the rest of the world's markets down with it!

[rivaldo] 06/11/2013 13:53

Cheers speedsgh. I think people might be surprised at the price EROS achieves post-IPO, especially in this market (assuming it continues). Maybe 375p-400p on day one if all goes well imo, with Thursday's Twitter IPO reinforcing the bullish mode.

[sphere25] 06/11/2013 13:14

Bloody hell, looks like it's finally going to happen!

Form 8A filed

Expecting an rns shortly to confirm the listing date

[speedsgh] 06/11/2013 12:37

Simon Thompson (IC online) has just updated on EROS maintaining his price target of 350p (equivalent to $17 per new ordinary share on NYSE) although he states that the "upside could be potentially more since I expect the after market to be strong in the US once the shares are listed".

For once the share price appears not to have moved following an ST update. This probably reflects the fact that most people have already taken their positions prior to the imminent switch (i.e. already sold/decided to hold).

[rivaldo] 06/11/2013 12:05

My shares are perfectly tradeable without a problem. I think you have a problem with your broker smurfy.

I may well open a new thread, but have had difficulty with overseas charts in the past, though the NYSE may be easier. Czar (or anyone else), perhaps you could do the honours when the time comes?

[smurfy2001] 06/11/2013 11:56

Rivaldo, my shares are no longer trade able, what about you?

Also will you be opening a new thread, not sure if the EPIC will be the same?

[rivaldo] 06/11/2013 09:25

Another filing in the USA - looks like full steam ahead for the US listing at $15-$17 per share:



Interesting article about it here - particularly the perceptive comment about needing a share split - doh :o)) And the first guy also doesn't seem aware that the AIM listing is being cancelled:

hxxp://www.northjersey.com/news/230774661_Indian_film_company_with_Secaucus_office_set_to_go_public_its_luck_in_U_S__market.html?page=all

"Indian film company with Secaucus office set to go public
Wednesday, November 6, 2013
BY ANDREW WYRICH

* Amid surge in IPOs, Eros International hopes to raise $200M

Eros International Plc, a global Indian film production and distribution company with an office in Secaucus, is preparing an initial U.S. public offering scheduled for this week, amid the hottest IPO market in six years.

Eros, which distributes films to more than 50 countries, plans to raise $200 million by offering 12.5 million shares at a price range of $15 to $17 a share. Its proposed symbol is EROS and it would trade on the New York Stock Exchange.

The company is catching a wave that surged last month when 33 offerings were made on Wall Street, making October the busiest month since November 2007. So far this year, 190 companies have gone public, according to data provider Dealogic.

John Fitzgibbon Jr., founder of IPO research firm IPOScoop.com, said the spike in initial public offerings is not surprising. Record highs on the NYSE, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq created fertile ground for IPOs, he said.

"When there is a good stock market overall, more IPOs will pop up,'' he said. "When the market is bad, there won't be any popping up."

Eros, is one of 12 companies scheduled to go public this week.

Founded in 1977, Eros reported net income of $27.1 million and total revenue of $215.3 million in March, according to Bloomberg Businessweek. The company has 1,900 films in its libraryand digital rights to 700 other movies, according to the company's IPO announcement.

Eros, which declined to provide officials to be interviewed for this story, is already listed on the London Stock Exchange, where shares are trading at $4.75, and its subsidiary, Eros International Media Ltd., is listed on the Bombay Stock Exchange and National Stock Exchange in India. Because of the company's London listing, some analysts disagree with calling Eros' upcoming stock sale an initial public offering.

"It's an interesting offering because, first of all, it's an Indian film production company offering in the United States, so you don't see that very often," said Fitzgibbon. "But their offering is coming off that exchange and coming to the United States. It's not so much an IPO but a secondary offering or an exact transfer."

David Menlow, president of IPOFinancial.com, a Green Brook-based website that analyzes IPOs, said Eros might need to pursue a reverse stock split to achieve the $15 to $17 range it is looking for on the NYSE.

A reverse stock split reduces the number of a corporation's shares, which increases the value of its stock or earnings per share. The market value of the total number of shares remains the same.

Amid the flurry of IPOs in October and the dozen coming this week, Menlow said, Eros' offering will not be as publicized as others.

"This is not one of the stocks that will be in the sweet spot," Menlow said. "Investors are more interested in the United States at this point; the China and Indian markets will take some more time. I would expect foreign funds to take a look at this stock."

Despite the cloudy outlook heading into trading on the NYSE, Eros has made an impact on the Indian film market. The company has five of India's 20 highest-grossing films in its library.

Deutsche Bank, Bank of America, Merrill Lynch, UBS Investment Bank, Jefferies and Credit Suisse are the joint book runners on the NYSE deal."

[rivaldo] 05/11/2013 13:44

EROS shares are certainly tradeable with Barclays. I don't know what rubbish broker you're using smurfy :o))

[smurfy2001] 05/11/2013 12:09

My EROS shares appears to no longer be tradeable.

[rivaldo] 05/11/2013 09:14

...and here we go....

[rivaldo] 05/11/2013 07:21

Cheers czar - the US IPO is finally happening it seems! Only days to go...

I note that even the Indian subsidiary's share price is climbing fast now.

[czar] 04/11/2013 17:27

This Friday is the day - Expect a strong debut.

[rivaldo] 04/11/2013 14:26

Wow - excellent news. Another big winner for EROS. Cheers boonboon.

EROS are certainly putting together a good story via this run of news prior to the IPO.

[boonboon] 04/11/2013 13:02

Eros have the overseas rights

While Krrish 3 has been hailed as a path breaking indigenous product, the film doesn't compete with the Hollywood superhero flicks at any level – be it story or special effects. The natural presumption was that the film was designed to cater to the interests of the domestic crowd. However, surprisingly, the film put up a fantastic show in overseas circuits.

Especially in U.A.E and other G.C.C countries, the film emerged as a winner. On its first day itself the film made an aggregated collection of 1.5 million U.S.D which escalated to 2.7 million US.D by its second day.

Though the film was never expected to fare well in the overseas, now it can even make an entry into Koimoi's Top 10 Highest-Grossing Bollywood Films In Overseas in less than a week. In that case, Krrish 3 can be expected to surpass Ra.One that currently occupies the 10th position on the list with a lifetime run of 9.2 million U.S.D. However, one has to still wait and watch if Hrithik's superpowers beats SRK's unbeatable overseas popularity!

[czar] 04/11/2013 12:03

ipo market on Fire!

DJ Container Store Shares Top $35, Nearly Doubling in Market Debut

By Paul Ziobro

Investors lined up to stash their cash at the Container Store, setting aside concerns about slowing growth to get in on a rare consumer-focused IPO.
Shares nearly doubled Friday to more $35 in early trading after pricing the night before at $18. That came after the company had already raised the expected range of its offering on Wednesday to between $17 and $18 a share from $14 to $16. The offering of 12.5 million shares was worth $225 million.