Eros International Media to raise Rs 405 crore from market

Media and entertainment company Eros Media World PLC on Thursday said its subsidiary would raise around $54 million (Rs 405 crore) by public issuance of convertible warrants.

The board of Eros International Media Limited (EIML), a subsidiary of Eros Media, has recently approved plans to raise up to $54 million of equity capital via a public issuance of convertible warrants in India, a statement said.

This will be subject to the approval of EIML’s shareholders and other customary and regulatory clearances. The existing ordinary shares of EIML are listed on the Bombay Stock Exchange and the National Stock Exchange of India Limited. The warrants do not represent any immediate beneficial ownership of EIML shares, but rather the right to purchase EIML shares at a particular price in the future.

“EIML has already received non-binding indications of interest which collectively represent approximately $54 million of warrant issue price from investors,” it said. Apart from the holding company Eros WorldWide FZ LLC, the issue is subscribed by marquee investor funds such Aegis Investment Fund, Aidos India Fund Ltd, Forbes EMF, NAV Capital Emerging Star Fund, Nexpact Limited, Vespera Fund Limited, and India Opportunities Growth Fund – Pinewood Strategy.

“The warrants issuance will provide incremental liquidity to invest in EIML’s operations, help fund future growth initiatives and improve balance sheet strength for EIML,” it said. On May 19, 2022, the board of directors of EIML unanimously approved an increase in the authorised share capital of EIML as well as the issuance of up to 135 million warrants at a unit price of Rs 30, which would entitle a warrant holder to one share of EIML per warrant at a premium of Rs 20.

EIML CEO and executive director Pradeep Dwivedi said: “We are pleased to note the significant investor interest in our warrant issue. It is a recognition of our large and valuable curated content library, and testimony to our growth prospects in tandem with the Indian media and entertainment industry in the web 3.0 era. We look forward to working with our new investors in exploring strategic moves with value creation for all stakeholders and sustainability for the company.” PTI