Eros International tanks 10% after allegations of potential wrongdoing at parent firm

Eros International Plc rubbished the Hindenburg report and announced a $20 million share buyback program

Media and entertainment firm Eros International Media tanked 10 percent on June 10 hitting a record low of Rs 40.95 per share. Short seller Hindenburg Research in a report alleged potential wrongdoing at parent Eros International Plc.


Rating agencies categorize Eros International Media's debt at default levels. However, Eros International Media said that it has taken steps to rectify delays in loan payments.

Eros International Plc rubbished the Hindenburg report and announced a $20 million share buyback program.

The company in its June 5 filing said rating agencies CARE revised its rating on company's long-term bank facilities (term loan Rs 300 crore and cash credit of Rs 263 crore) down to 'D' from 'BBB-' each while keeping the outlook stable.

The agency also downgraded the rating on Eros' short-term bank facilities worth Rs 187 crore to 'D' from 'A3' earlier.

At 1446 hours, Eros International Media was quoting at Rs 40.95, down Rs 4.50, or 9.90 percent. It has touched a 52-week low of Rs 40.95.

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