Small BusinessEros International plans IPO for Indian unit
AIM-listed integrated studio operator Eros International plc is planning to list its wholly-owned Indian subsidiary on the Bombay Stock Exchange in the current financial year.
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Eros International plc, has firmed up its plans to list Eros International Media Ltd, its wholly-owned subsidiary company in India, on the BSE, the company said in a regulatory filing to the London Stock Exchange.
"It is expected that the transaction would conclude within the current financial year ended March 2010," the filing added.
Enam, Kotak and RBS (Royal Bank of Scotland) has been appointed to act on the Indian IPO.
"It is currently intended that any new funds raised by Eros India in the Indian IPO will not result in a dilution of the company"s ownership in excess of 25 per cent," the company said.
The company has also made a few changes in its management and has appointed A P Parigi as group CEO for the Indian operations and Naresh Chandra as the non-executive Chairman of the Indian board.
"It is expected that the intended IPO and the recent appointments, would drive the group"s growth and consolidation within India," the company said.
Eros International plc has experienced a strong second quarter of the financial year and continues to trade in line with management"s expectations, the company said.
The cash generation during the July to September period was in line with expectations and net debt on September 30 2009 was at a similar level to that of March 31 2009.
"Given the strong release schedule and anticipated cash generation in the second half, net debt is expected to show a material reduction by the financial year-end," the company said.