Eros International under Wells Fargo’s scanner, stock downgraded

MUMBAI: Eros International, a Bollywood film producer and distributor, has come under attack of a leading Wall Street bank, Wells Fargo. The investment bank has raised questions about US-listed Eros’s continued increase in revenues from the UAE.

On Friday, Eros shares dived 16.6 per cent on the NYSE. On the BSE, its subsidiary, Eros International, fell 3.8 per cent to Rs 436.8.

The company held a concall with analysts in the US on Friday to counter allegations on Twitter about its growing revenues from the UAE.

"Management broke down the receivables in a very detailed manner, but quite frankly it was still difficult for the analysts on the call to fully grasp the collection cycle and movement of funds (particularly deals booked in the UAE)," said Wells Fargo, in a report released on Friday, downgrading its rating on the stock to ‘market perform’.