MUMBAI: The stock price of Eros International Media Ltd continues to plunge, even as SEBI has launched an inquiry into the Company.
On 22 February 2013, Eros International Media Ltd which stood at approximately Rs 193.35, nosedived to As 170.95 by 26 February 2013. Brokers suspected pledged shares sell off, and the market regulator SEBI launching a probe into possible foul-play in the matter. Reports suggested, “Stock exchanges and market regulator SEBI immediately began looking into the matter to probe any possible foul play after a huge sell-off was witnessed in the shares of more than a dozen companies towards noon.”
Stocks like Eros International and Opto Circuits, which fell 20% during the day, recovered part of the losses to close 6.28% and 12.34%, respectively. The substantial increase in trading volumes have been noticed on the stock of Eros, which led the Exchange to probe into the matter to ensure the investors’ interests are safeguarded. Eros International Media Ltd has stated, “There are no corporate actions or significant events/ information bearing on the operations/ performance of the Company including the price sensitive information etc.”
Kamal Jain, Group GFO, Eros Media International said the company was not sure of the reasons behind the sharp selling of the stocks. “Our business fundamentals remain intact. We don’t know the reasons, but think an individual stock holder who held position has sold. The promoters hold 75 per cent stake in the company and none of our stocks are pledged.”
Eros had recently released a statement via a press release on 26 February, announcing a tie-up between Eros and HBO Asia, for a distribution deal with leading DTH operators Dish TV and Airtel Digital TV. This comes close on the heels of news of a strategic tie-up between HBO Asia and Eros to launch two new premium advertising-free movie channels in India.
Currently, the stock of Eros is trading at approximately Rs 17o. In comparison, the highest last traded price in the past 6 months was Rs 223.70 on 10 December 2012.
Eros International Media Ltd is the company which distributed films like ‘Ra.One’, ‘Desi Boyz’, ‘English Vinglish’ and many others.