Eros’ $20-m US buyback plan fails to impress local investors

Film entertainment company Eros International on Monday announced a $20-million (Rs 139-crore) share repurchase plan in the US, which failed to boost investor sentiment at home in India. Its New York-listed shares, however, opened higher on Monday.

Eros International Media, the local company that had lost 36 per cent of its market value in two days of trading last week after a steep downgrade by ratings firm CARE, fell almost 10 per cent on the BSE Monday, despite the US-listed holding firm annoucing the buyback plan and the management reassuring investors about its finances.

On Monday, its BSE-listed shares closed at a 52-week low of Rs 40.95.


On the NYSE, Eros International Inc gave up most of the gains after opening as much as 13 per cent up, but was trading in the green in late morning trade.

After its downgrade to the default level by CARE, Eros had also come under attack from a US research firm, Hindenburg Research, raising questions about its receivables and accusing its promoters of engaging in “highly irregular related-party transactions”, which the company had denied.