Mumbai: Eros International Plc, listed on the New York Stock Exchange, has announced a $20 million share repurchase program. The announcement comes after the company’s stock took a knock last week after it was downgraded for delays in servicing its loans.
The company later clarified the loan payments were ‘being expedited while year marking INR 138 Cr towards repurchasing of share.
“The Eros Board of Directors believes the equity value of Eros International PLC is seriously undervalued in the public markets and accordingly, the Board has approved a share buyback program of up to $20 million of outstanding common shares. We look forward to discussing Eros International’s Fiscal Year and 2019 results with the market on July 15, 2019,” Eros International added.
It said the repurchases might be made at management’s discretion from time to time on the open market or through privately negotiated transactions.
“The repurchase program has no time limit and may be suspended for periods or discontinued at any time. Eros’ share repurchase program does not obligate it to repurchase any specific number of shares and may be suspended or discontinued at any time.”
CFO Prem Parameswaran said the company has a “strong liquidity profile and healthy balance sheet” with no meaningful near-term debt maturities.
“As of March 31st, 2019, we had over $135 million of cash and cash equivalents on our balance sheet and our net debt position was $145 million (unaudited figures). Since the company went public in 2013 Eros has invested over $1.2 billion in content and generated over $970 million in operating cash flow from operations.”
Eros also said it is working with CARE Ratings to address their concerns of short-seller allegations about financial misappropriations.