Eros is planning to delist its Indian subsidiary? Stock surges

Shares of Eros International Media ended the day at Rs 496.00, up 12.12%. The stock surged 20 per cent in intraday trade.

The company has sought expert opinion after investor groups suggested de-listing the Indian subsidiary to stave off 'transfer pricing' and 'subsidy' concerns.

They pointed out that NYSE listed parent has extended interest free loan of Rs 500 crore to the local unit towards production expenses. A move to take Indian subsidiary private - either through a buyback or swapping shares with ADRs - would mitigate these concerns and make the structure more tax efficient.

Promoters own almost 75% stake in the local unit with a market capitalization of Rs 4000 crore. An Eros spokesperson said he would not comment on the matter.

Meanwhile, Knight Assets said, "We are supportive of Eros management team and their Digital strategy and believe Eros will be largest beneficiary of the ongoing digital transformation."