Eros Share Discussion Threads

[yorkie52] 12/11/2013 12:37

Just received my new share certificate through the post. The date of issue was 8th November. So the 1 for 3 consolidation has taken place but the market seems to be trading under the old shares??? Anyway this was the prelude to the IPO so I guess something is imminent.

[zho] 12/11/2013 12:34

>>Meanwhile, EROS can tell investors of a stupendous success story for its Krrish 3 release>>

Yes, if only they weren't in purdah in the run up to the listing ;-)

[boonboon] 12/11/2013 12:21

That's just over $5 million I beelive.

[rivaldo] 12/11/2013 12:13

Indeed. Meanwhile, EROS can tell investors of a stupendous success story for its Krrish 3 release, which has earnt around 40 crore from overseas earnings alone with loads more to come!

hxxp://www.koimoi.com/box-office/krrish-3-2nd-weekend-overseas-box-office-collections/

"Krrish 3 : 2nd Weekend Overseas Box Office Collections
November 12th, 2013 by Koimoi.com Team

To say Krrish 3 has been stupendous is an understatement. The film's box office journey speaks volume about its caliber at establishing the sci-fi genre in India. Being an indigenous superhero flick, the film has been quite a winner in both domestic and overseas. Though international cinema has witnessed better superhero flicks, Krrish 3 sill managed to carve out a significant space amongst the high ranking superheroes.

In U.S.A and Cananda, the film by the end of its 2nd weekend made a business of 11.80 crores from 185 screens. In U.A.E and G.C.C, the film stood at a phenomenal 13 crores by the draw of its second weekend.

In U.K and Ireland, the film collected 7.25 crores and from its Australia and New Zealand circuit, the film made 3.23 crores by the end of 2nd weekend.

Given Hrithik Roshan's star value has lesser power in the overseas as compared to domestic, the film's box office performance has been startling so far assuring that sooner it will find wider avenues to earn more in the overseas circuits."

[speedsgh] 12/11/2013 10:59

Riv - Let's hope it does go ahead this week. Worth bearing in mind that it does say "planned for" which leaves a certain amount of wriggle room.

[rivaldo] 12/11/2013 07:52

Further confirmation of the IPO for this week:



"12 US IPOs planned for the week of Nov 11

By Renaissance Capital, November 11, 2013, 07:00:05 AM EDT"

"Eros International ( EROS ), which produces and distributes Indian films in over 50 countries, plans to raise $200 million by offering 12.5 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, Eros International would command a market value of $844 million. Eros International, which was founded in 1977, booked $208 million in sales over the last 12 months. The Mumbai, India-based company plans to list on the NYSE under the symbol EROS. Deutsche Bank, BofA Merrill Lynch, UBS Investment Bank and Jefferies & Co. are the joint bookrunners on the deal."

[czar] 11/11/2013 14:59

K. Venkatasubramanian
Share • Comment • print • T+ < a href="http://www.thehindubusinessline.com/features/investment-world/eros-international-media-buy/article5333138.ece?textsize=large&test=1" title="Large Text Size" >T+ •
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Making mega bucks from the likes of Krrish 3.
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November 9, 2013:
The fortunes of the entertainment industry tend to move in line with the prevailing economic environment. But within the industry, there are companies that have built a resilient business model around film distribution that allows them to stay insulated and thrive even when spends in the economy slow.
Eros International Media (Eros) is one such film distributor and co-producer of mostly Hindi and select regional language movies.
The company has managed to derive significant revenues from movies across budget sizes, while reducing business risks by monetising the cable and satellite rights for such films.
Investors can buy the shares of Eros with a two-year horizon. At Rs 185, the share trades at 11 times estimated per share earnings in FY14. This is lower than the high double-digit valuation enjoyed by multiplex players as well as its own average historical multiples of 13 times over the past three years.
A slew of top movie releases with mid-sized budgets that have been successful in the current fiscal, a strong pipeline of star-studded films and the ability to monetise movie rights by selling them to satellite channels are key positives for the company.
In the first half of this fiscal, Eros benefited from films such as Grand Masti, Raanjhanaa and Yeh Jawani Hai Deewani.
Still, revenues fell 19 per cent over the same period in the previous fiscal to Rs 395.7 crore, though net profit rose 15.1 per cent to Rs 66.3 crore.
The revenue drop was because the company focused on mid-sized budget films without too many megastars featuring in them as it wanted to stay away from risky high-cost movies.
In the current slowing economic environment, the company is not going big on mega budget movies of Rs 100-150 crore, like it did earlier.
This meant there were no blockbuster releases, as a result of which revenues were not as robust. But the focus on mid-budget films with a moderate star cast has helped it contain costs significantly.
De-risked business model
Eros is predominantly a film distributor, though there are films that it has co-produced as well. Given the trend of releasing Hindi films early in the lucrative overseas market (countries with significant Indian expatriate presence, such as the US, Canada, the UK and the UAE), this proportion bodes well. Even regional language films are now releasing simultaneously abroad or even slightly earlier in some cases.
Here, Eros de-risks its business by pre-selling the overseas rights to overseas entities that have significant presence. Through this, Eros has generally been able to recover nearly 40 per cent of its cost of acquisition of a film, thus, significantly reducing the risk associated with a film's offtake as well as ensuring cash flows.
The company also recovers 35-40 per cent of its costs by selling movie rights to channels such as Colors, Zee TV and Star Plus.
While co-producing, Eros tends to enter into revenue sharing arrangements with stakeholders only after it recovers a significant portion of its investment.
Together, these strategies reduce the risk inherent in the film production and distribution business. Thus, Eros has been able to gain from multiple revenue streams and limit the losses quite significantly in case movies do not perform well in theatre screens.
Gaining from satellite
After the telecom regulator mandated digitising cable networks in metros and top cities, DTH players and digital cable companies have been able to substantially increase the number of subscribers to their networks. This has led to growth in subscription revenues for satellite channels. It is also increasingly helping them broadcast new movies soon after after their release.
According to a FICCI-KPMG report, the size of the Indian film industry is set to grow at a compounded annual rate of 11.5 per cent from 2013 to touch Rs 19,330 crore by 2017.
But the television industry is set to grow at a much faster 18 per cent over the same period and touch Rs 84,760 crore by 2017.
Players such as Eros would benefit from this trend as they increasingly look to tap the small screen for monetising films.
Healthy pipeline
While the company has indicated its intention to remain focussed on mid-sized budget films, a few releases big-ticket releases are on the anvil.
These include Kochadaiyaan, Ram Leela, Krrish 3 (released this month) and Happy Ending.
The star cast in these movies includes Rajinikanth, Deepika Padukone, Saif Ali Khan, Hrithik Roshan, Priyanka Chopra and Shahid Kapoor, among others, who could pull the public to the multiplexes.
The company is consciously staying away from mega budget films featuring the three Khans or Akshay Kumar.
However, this strategy may see it lose out on potentially top-grossing movies.

[smurfy2001] 11/11/2013 14:54

How come, do we know if this is normal?

[boonboon] 11/11/2013 14:51

apparantly it won't

[smurfy2001] 11/11/2013 14:43

DOES ANYONE KNOW IF THIS WILL SETTLE IN CREST FOR THE NYSE LISTING?

MY BROKER DOES NOT KNOW

[foot in mouth] 11/11/2013 14:36

Has anyone got any historic stats of the premium at opening for new listings on the NYSE on their first day/week?

I tried google without much success.

[yorkie52] 11/11/2013 12:20

According to the SEC site the F1 registration documents were accepted and became effective on 7th November so it should be all systems go. The IPO price range is $15 to $17 equivalent to £3 to £3.50 so unless there is a poor take up by institutions etc we should all be quids in. I am just concerned that someone maybe in the know and that's why the share price has tanked in last few days. alternatively it is just mms playing games with investors who don't want the dollar shares. It would be a great buying opp if its the latter. Or maybe its the Yanks that don't like the Indians!! Hopefully the Ipo price will be finalised this week and it will be a great success. All fingers and legs crossed.

[jammy00] 11/11/2013 10:23

some (professional = insider) investors will have had
sight of the road shpw materials now....

and oops..

what do you rate the chances of an 'illegal' escape
of information and trades?

PI's, as always, kept in dark where ignorance is bliss -
or not as in this case.

[napoleon 14th] 11/11/2013 10:12

Looking very untidy!
So, what's new?

Time they got their act together after all this time.

[yorkie52] 11/11/2013 09:45

Surely this needs a company statement to explain the 20% plunge in price in the last few days. Worried that all is not well

[old portmuthian] 09/11/2013 21:14

The world has moved on for ISAs

[napoleon 14th] 09/11/2013 15:52

sumi - you'll have to ask your broker.
I only do main market LSE in mine.....

[jbarcroftr] 09/11/2013 12:40

I think the IPOD investors will want to buy at the bottom( or below) the indicated price range.
I am sure they will be looking for at least 20%gain post float
So 400 p is on the horizon by the New Year

[miss ann thrope] 09/11/2013 10:26

- oh kidaaaaaa...upar upar chale ga!

WTF??????????????????????

[aimingupward2] 09/11/2013 10:24

eacn - thank you very much indeed for your detailed and knowledgeable comments which I, and I am sure others, have found very reassuring in conditions of otherwise worrying uncertainty.

[zho] 09/11/2013 09:21

Excellent post eacn, thank you

[sumitos] 09/11/2013 08:56

I thought to be ISAble a stock only hd to be traded on a recognised stock exchange - surely NYSE would fall into this category?

[napoleon 14th] 09/11/2013 00:00

Fear & greed!
Greed drove the price up a fair bit.
This slight delay has played on already fraid nerves after a long, long wait anyway, & fear took its' toll on profits from the greed.
I agree with eacn, but also don't forget LSE lost ground until NYSE wrong-footed us today & rose (!), maybe too late for EROS on a Friday p.m.
Overall IMHO it's a matter of keeping your cool & not panicking, & things will work out (now that Tweet has got it's show away very nicely).

IMO an ISA provider will be a problem as soon as the London quote is abandoned as EROS will only be US quoted.... but it won't prevent you stagging it! - as long as your broker can sell the NY quoted shares & retain the funds in your ISA, but WTFDIK?

NAI, DYOR.

[old portmuthian] 08/11/2013 23:36

eacn

Great post - like the Estate Agent comment, spot on.

What with road shows and book building etc do you think they will beat the Christmas close down (early Dec to late Feb), Getting a bit tight now, the timetable not me.

In 9042 you commented (at least I took it that way) that ISA's wouldn't take Eros after the transfer to the US - I hope they will as that's where I've been sticking mine lately. As ever my extra weight of money has put the kibosh on the whole show.

[yorkie52] 08/11/2013 23:29

Thanks for that eacn you seem very knowledgeable on these matters. not though sure why the Nasdaq site has the company doing the IPO today and nothing has happened. why can't the company issue a definitive statement as to when the IPO will take place? We seem to be getting the impression from todays and yesterdays falls that all is not well. Does someone in more privileged positions know more than me as the average punter. I have a very significant amount invested here and have lost a lot both yesterday and today and would hate to think I have been left in the dark.