The Eros International stock rose 5.13% or 10.15 points on BSE to 207 level after Reliance Industries Limited (RIL) on Tuesday said it would acquire 5 percent stake in NYSE listed Eros International for Rs 1,000 crore with a view to producing and acquiring Indian films and digital originals across all languages.
At 9:59 am, the stock rose 4.93% to 207.45 level. It hit a high of 219 level and low of 206 level in intra day trade. The Eros International stock 4.63% higher to Rs 206 on BSE.
The Reliance Industries stock was trading 0.60% or 5.50 points higher at 924.90 on BSE. It closed 0.97% higher to 928.35 level on the BSE.
On an year to date basis, the stock is up 1.41%. The stock is down 2.43% during the last one year.
RIL and Eros International Plc announced that RIL, through a subsidiary, "has agreed to subscribe to a 5 per cent equity stake" in Eros at a price of $15 per share, RIL said.
Both the companies have agreed to partner in India to jointly produce and consolidate content from across the country.
"The parties will equally invest up to Rs 1,000 crore in aggregate (about USD 150 million) to produce and acquire Indian films and digital originals across all languages," it said.
Eros International Media Limited is engaged in the business of film production, exploitation and distribution. The company's principal products/services include media and entertainment industry. Its geographical segments include within India and outside India.
The company distributes film content through the various distributions channels, including theatrical, which include multiplex chains and stand-alone theatres; television syndication, which include satellite television broadcasting, cable television and terrestrial television, and digital and ancillary, which includes Internet Protocol television, video on demand, music, inflight entertainment, home video and Eros Now.