Shares of media firm Eros International Media Limited jumped 6.34 percent intraday on Wednesday after Reliance Industries Ltd (RIL) on Tuesday said it will buy a 5 percent stake in NYSE listed Eros International Plc (Eros) through a subsidiary.

RIL will pay USD 15 per Eros International share, which represents an 18 percent premium to Friday’s closing price. Further, the two parties will equally invest up to Rs 1,000 crore to produce and acquire Indian films and digital originals across all languages, RIL said.

In a statement, RIL chairman and MD Mukesh Ambani said the tie-up will bring further synergies to the firm’s plans, making for a win-win partnership. Alongside, Eros chief executive officer Jyoti Deshpande will be stepping down to head RIL’s media and entertainment business. Deshpande will join RIL this April but will continue to remain as a non-executive director on the board of Eros.

RIL and Eros International Media Ltd will partner to jointly produce and consolidate content from across India.

At 09:34 hrs Eros International Media was quoting at Rs 209.30, up Rs 11.60, or 5.87 percent. It has touched an intraday high of Rs 219.00 and an intraday low of Rs 208.45.

: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd