Shares of Eros International Media rose to its highest since November 2011, after it acquired 10 worldwide shows from Zee TV. The stock ended 8.83 percent higher at ₹247 per share and hit an intraday high of ₹251 and a low of ₹235 during trading hours.
At 1.30 pm on Wednesday, stock price of Eros International Media Limited surged 5.88 percent and were seen trading at ₹240.30 per share.
"The deal is positive for Eros as it adds a significant value to the company's offerings," Reuters quoted an institutional analyst with a foreign brokerage.
Following the announcement of the deal with Eros, stock prices of Zee Entertainment Enterprises too recorded higher at ₹287.70 per share. Its stock hit an intraday high of ₹288 and a low of ₹284.
Eros said that the partnership with Zee would allow Eros to broadcast Zee's content ranging from serials and soaps to reality shows. Titles like "Ek Mutti Aasmaan," "Pavitra Ristha," "Fear Files," "Jodha Akbar," "Qubool Hai" etc will be available to subscribers on this portal.
"Partnership with a leading television player like Zee for compelling content is a natural step to providing the very best of Indian entertainment to our consumers worldwide. We are very excited to bring these shows to the platform and are confident this content will be enjoyed worldwide," said Eros Now CEO Rishika Lulla Singh.
Zee Entertainment Enterprises MD and CEO Punit Goenka said that their channel would be now able to capture viewers from all around the world with the best shows from Zee Library. It would reach more than 169 countries with access to over 670 million viewers globally after the deal, reported Indian Television.
"Zee has always been a leader in the media and entertainment space, having evolved from being a broadcaster to a content creator and aggregator," said Goenka.
"Our premium television content is enjoyed by a large global audience across diverse platforms, with a definitive surge in younger viewers who are more accustomed to consuming entertainment via digital platforms," he added.
Eros International's trailing 12-month (TTM) EPS was ₹12.77 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 17.85. The latest book value of the company is ₹96.51 per share. At current value, the price-to-book value of the company is 2.36, reported Moneycontrol.
Eros Now, which was developed in 2012, has a selection of hundreds of movies and thousands of music videos.