Eros International Media shares have rebounded by nearly 5% on the BSE after the company reassured its shareholders that there was no cause for worry over its operations in the UAE.
Eros International Media shares have rebounded by nearly 5% on the BSE after the company reassured its shareholders that there was no cause for worry over its operations in the UAE.
The shares of the Bollywood film distributor, on Monday shredded nearly 20% on BSE and nearly 45% on the New York Stock Exchange, where the parent company Eros International Plc. is listed, after Wells Fargo & Co, an American multinational banking and financial services holding company, questioned Eros's performance in the UAE.
The company, in a statement to the BSE, said that the share price volatility on the parent company's stock on the NYSE and the company's stock on BSE was due to speculative media reports.
"Analysts downgrade or upgrade stocks regularly and that, as such, is not a cause for concern. Note that Wells Fargo did not revise down their earnings estimate for the quarter or the year, and the price target is $22, well above the price the stock was trading on the date it was published", said the company is its BSE filing.
They said in a filing to the BSE that there has been no material change in the fundamentals of the company.
Wells Fargo and Co claim that they were dissatisfied with the interaction with the company's board about the sudden jump in the company's revenues from the UAE, especially in the absence of clarity on who the huge consumers of content are.
Eros, in the filing to BSE has also said that another analytics firm "Macquire has a positive report on the company, and has maintained outperform rating with a price target of $25, on the same day as the Wells Fargo report on Friday October 23."
At 1140 hours, the stock of the company was trading up 4.97% or Rs 17.60 higher at Rs 372 per share. Intraday, the company's shares were 5% higher.
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