Eros Media World’s India subsidiary plans to raise Rs 405 crore in equity capital
Executive Director Pradeep Dwivedi has said there is a significant investor interest in the company’s warrant issue
Eros International Media Limited (EIML), a majority-owned subsidiary of Eros Media World, is planning to raise up to $54 million (Rs 405 crore) of equity capital via a public issuance of convertible warrants in India, subject to EIML shareholder approval and other customary and regulatory approvals.
EIML has already received nonbinding indications of interest which collectively represent approximately $54 million of Warrant Issue Price from investors. Apart from the holding company Eros WorldWide FZ LLC, the issue is subscribed by marquee investor funds such Aegis Investment Fund, Aidos India Fund Ltd, Forbes EMF, NAV Capital Emerging Star Fund, Nexpact Limited, Vespera Fund Limited, and India Opportunities Growth Fund - Pinewood Strategy.
The company said that the warrant issuance will provide incremental liquidity to invest in EIML’s operations, help fund future growth initiatives, and improve balance sheet strength for EIML.
The existing ordinary shares of EIML are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). The Warrants do not represent any immediate beneficial ownership of EIML shares, but rather the right to purchase EIML shares at a particular price in the future.
On May 19, 2022, the Board of Directors of EIML unanimously approved an increase in the authorised share capital of EIML as well as the issuance of up to 135 million Warrants at a strike price of approximately $0.40 per share (Rs 30), which would entitle a Warrant holder to one share of EIML per Warrant at a premium of approximately $0.27 per share (Rs 20). The Warrant holders will be entitled to exercise the Warrants at any time, partially or in full, within a period of 18 months from the date of allotment by delivering to EIML a written notice of exercise.
An amount equivalent to 25% of the Warrant Issue Price shall be payable at the time of subscription and the balance of 75% shall be payable by the Warrant holders upon the exercise of the Warrant. In the event that a Warrant holder does not exercise the Warrants within a period of eighteen (18) months from the date of allotment of such Warrants, the unexercised Warrants will lapse and the amount paid by the Warrant holders on such Warrants would be retained by EIML.
EIML CEO and Executive Director Pradeep Dwivedi commented on the fundraising announcement: “We are pleased to note the significant investor interest in our Warrant issue. It is a recognition of our large and valuable curated content library and testimony to our growth prospects in tandem with the Indian media and entertainment industry in the web 3.0 era. We look forward to working with our new investors in exploring strategic moves with value creation for all stakeholders and sustainability for the company.”
