Newspaper article The Record (Bergen County, NJ)

Indian Film Giant to Try Its Luck in U.S. Market

Newspaper article The Record (Bergen County, NJ)

Indian Film Giant to Try Its Luck in U.S. Market

Article excerpt

Eros International Plc, a global Indian film production and distribution company with an office in Secaucus, is preparing an initial U.S. public offering scheduled for this week, amid the hottest IPO market in six years.

Eros, which distributes films to more than 50 countries, plans to raise $200 million by offering 12.5 million shares at a price range of $15 to $17 a share. Its proposed symbol is EROS and it would trade on the New York Stock Exchange.

The company is catching a wave that surged last month when 33 offerings were made on Wall Street, making October the busiest month since November 2007. So far this year, 190 companies have gone public, according to data provider Dealogic.

John Fitzgibbon Jr., founder of IPO research firm IPOScoop.com, said the spike in initial public offerings is not surprising. Record highs on the NYSE, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq created fertile ground for IPOs, he said.

"When there is a good stock market overall, more IPOs will pop up,'' he said. "When the market is bad, there won't be any popping up."

Eros, is one of 12 companies scheduled to go public this week.

Founded in 1977, Eros reported net income of $27.1 million and total revenue of $215.3 million in March, according to Bloomberg Businessweek. The company has 1,900 films in its libraryand digital rights to 700 other movies, according to the company's IPO announcement.

Eros, which declined to provide officials to be interviewed for this story, is already listed on the London Stock Exchange, where shares are trading at $4.75, and its subsidiary, Eros International Media Ltd., is listed on the Bombay Stock Exchange and National Stock Exchange in India. Because of the company's London listing, some analysts disagree with calling Eros' upcoming stock sale an initial public offering.

"It's an interesting offering because, first of all, it's an Indian film production company offering in the United States, so you don't see that very often," said Fitzgibbon. "But their offering is coming off that exchange and coming to the United States. …

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