New Delhi: The board of media and entertainment firm Eros International on Monday announced a share repurchase program worth up to $20 million (approx Rs 138.86 crore) on the New York Stock Exchange.
The announcement comes after Credit Analysis and Research Limited (CARE), on last Wednesday, downgraded the ratings assigned to the bank facilities of Eros International's Indian arm Eros International Media on account of a delay in servicing of bank loans for the month of April 2019 and May 2019.
"The Eros board of directors believes the equity value of Eros International 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," Eros International Media said in a regulatory filing on Monday.
Eros International Group Chairman and CEO Kishore Lulla said, "We now have a strong financial and operating position and our management team are making it a priority to work with CARE Ratings, the regulatory agency, to have our credit rating revised upwards in due course"
Regarding share repurchase announcement, the company said it "may be made at management's discretion from time to time in 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".
Shares of Eros International Media on Monday fell 9.90 per cent on the BSE to hit its 52-week low and the lower circuit of Rs 40.95 apiece.
The company's shares had plummeted 15 per cent on Friday despite the company's clarification regarding CARE ratings action.