Eros International share price plunges over 17%, near 52-week low; here’s why

Furthermore, according to SEBI’s interim decision on Thursday, Lulla and Dwivedi are barred from serving as directors or senior management positions in any listed company, including Eros International or its subsidiaries, until further orders are issued.

The markets regulator has also restrained  two promoter entities, Eros Worldwide FZ LLC and Eros Digital Private Ltd, in addition to Eros International and its two top executives.

Furthermore, the regulator has recommended that a forensic auditor be appointed to review the books of accounts of three BSE-listed companies.

Thinkink Picturez Ltd, Mediaone Global Entertainment Ltd, and Spicy Entertainment and Media Ltd – all of which appear to have served as conduits for Eros’ alleged misappropriation of funds.

Within three months, the forensic auditor will submit the findings to the exchange.

Sebi ruled in its 53-page order that the company’s books of accounts had been exaggerated and do not offer a genuine and fair picture of its financial condition.

“The transactions between the ‘content advance entities’ and the ‘trade receivable entities’, raise the possibility that Eros International was circulating funds whereby amounts transferred as content advances were subsequently recognized as revenue by routing it through trade receivables entities,” SEBI said.

On the technical front, the stock was trading near its 52-week low during Friday’s trading session. As per trendlyne data, the stock price rose 0.2% and underperformed its sector by 13.8% in the past year. The stock was trading at high volume of 7.4 million with price loss of -18.03.

According to Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One, the stock is down 15% with huge volumes, even though it has bounced from morning lows , view remains negative , 24 – 25 range is expected to act as resistance.

Updated: 23 Jun 2023, 12:31 PM IST