Eros International Media jumps 5% as firm completes stake sale in arm STX

NEW DELHI – Shares of Eros International Media climbed 5 per cent in early trade on Tuesday as the parent company of Indian entertainer, Eros STX Global Corporation, said it has completed the sale of its subsidiary STX and has renamed itself as 'Eros Media World PLC'.

The company has fully repaid $152 million of outstanding JP Morgan credit facility and subordinated credit facilities at STX level.

Eros International Media’s scrip jumped to a high of Rs 30.45 as against Rs 29 at previous close on the BSE.

According to reports, Eros is to retain 15 per cent non-voting stake in STX with long-term monetisation potential.

The firm expects over $120 million in revenues in the financial year ending 2023, reports said, adding that the current debt level of $130 million as of the end of the previous financial year is expected to decrease to $115 million by the end of the current fiscal.

Eros Media’s studio division, which already owns, manages and controls one of the world’s largest Indian-language film libraries of over 3,000 titles spanning decades, will be focused on monetising its library of content-driven films with appropriate budgets to generate an attractive rate of return, reports said.

“As the business and market matures, I am confident in Eros Media’s execution capability with fundamentals on track. I am pleased to announce Pradeep Dwivedi as CEO and welcome Rajesh Chalke as CFO to usher in a new era for Eros Media, with guidance from an experienced board,” reports quoted former Executive Chairman Kishore Lulla as saying.