[buffet]

@logan, @headstead @admin

By any chance, can’t we nominate board of director?
Retailers now holds sizeable chunk.even other big retail holders like Praveen khurana, priya prakash, anil kumar etc who holds 7-8 % could also very well align.

May be we can support them or they can support us.

Any way to initiate communication with them?

Plz advice.

[Rathi_b]

SKR is looking into the g gang thing. He spoke with us about them. Be calm and hold on to your shares. Please do not sell them in panic. Good days are coming. I’m holding onto mine. I hope you all will too. I can’t really tell you about what end game is, I don’t know either. But we were clearly assured that stable investors who would not manipulate the stock price will be brought in the company.

[Logan]

For the price to get out of operators’ (manipulators) control, we need to see material changes.

During 2012-13, the price crashed below 3 levels because of LGS write off and then it rose to above 60 levels because of material changes in the business (tremendous growth in revenues and profits).

Then again there were fluctuations in prices because of Daum case and finally it crashed because of bankruptcy announcement of one of BCG’s subsidiaries (Ybrant Media Acquisition Inc).

Then when all these were happening simultaneously there was selling by VC and PE firms which brought in more supply of shares. Combination of all these became a disaster for the stock price.

When all these happened there weren’t material changes in the company to stabilize or lift up the price.

In last 1-2 years, there were/are material changes, even though SBI and Canara loans were closed we didn’t see changes in price because pledged shares weren’t released. During corona rally, we saw reduction in pledged shares and that gave strength to the rally.

Oak selling halted that rally but didn’t crash the price to extreme levels because the market knew Oak was exiting.

But the recent crash is because of Axis case which is causing lot of uncertainty (wrt price not business) and operators are taking big advantage of the current situation. They are creating panic among investors (we can the volumes).

Fortunately we don’t have many issues now so these operators can’t manipulate like they did in the past.

[buffet]

I believe, at the max axis case can drag till Jan-2021.

As per the Insolvency and Bankruptcy Code, 2016 (the Code), the procedure involved in the Corporate Insolvency Resolution Procedure should be completed within 180 days or within the extended period of 90 days and mandatorily be completed within 330 days including any extension and the time taken in legal proceedings. In short, the resolution procedure should be completed within 330 days, failing which the Adjudicating Authority will initiate liquidation procedure under Chapter III of the Code..

I hope SKR won’t drag NCLT till Jan-2021.

[Anonymous]

Case started Jan 21, 2020 so as of today it is 265 days another 65 days left December 15, 2020 it wil be 330 days, but remember it is extraordinary situation because of pandemic so days will be count or not, not sure. Indian express article read IBC Amendment ordinance 2020.
No fresh insolvency for default after lockdown declaration. Can anyone explain it.

[lycos.rags.to.riches]

As expected market is giving a thumbs down. Looks like we will revert back to old days.

[Anonymous]

DON’T worry it is expected, it will continue till management show some openness what is actually happening inside. See sintex industries situation . It all started early 2019 see after 15 months almost 108 crore loan fraud. Not questioning anyone, but when things should happen early instead it is delaying and no proper commentary from management then market will not give any value, if I am not wrong BDO audit should have been completed by June end, but see what is the update nobody knows nothing. See if as an boss if I am think I am clever then I should know market is more cleverer than me. If proper step not taken, fall will continue even my fear is it can go below 52 week hope and pray, I may wrong. Really disgusting to see what is happening with Brightcom share.

[odysee]

The last conference call didn’t address many issues and numerous questions and queries remain unanswered, as it was too short at 45 minutes (stretched to an hour).
My concern is the lack of reference whatsoever to BDO and their status. If they had been engaged a few quarters ago, what is the outcome of their efforts? Was it only to assist in the consolidation? But that is now “on hold” as per Mr Reddy. Why? LOC directly to the main holding company? And not to the new entity comprising the 12 subsidiaries? Surely all this was discussed with the potential lenders well before the exercise even commenced. And BDO was appointed many moons ago.
To conduct the audit also? Or not?
There is no clarity or confirmation as to whether BDO International is still in the game or not. If so, what was the mandate?
Has that been modified?
I would request Mr Reddy to be transparent on this issue and provide an update to the shareholders as the ‘inflection point’ has now become a moving target.
I am not clear if the investor team that met with SKR on the 5th of October touched upon this matter or anything else related to it.

[Logan]

My guess is that the audit was done mostly to get the LOC. Back in 2016-17, BCG’s subsidiaries were audited by EY at White Oak’s request/order. Since BCG has many subs, the lenders will always ask for a complete/thorough audit which usually takes time.

I don’t think they’d reveal the report to public because it contains all the sensitive information about the company. They shared many presentations with us during the lockdown which was good.

I agree with @odysee on lack of details given by the CEO on consolidation of subs. My guess is that they are not sure whether the parent company gets the LOC or the consolidated sub gets it. If they consolidate all the subs and if the parent gets the LOC then they have to make other arrangements (mostly tax related).

The business is good but the CEO doesn’t know how to communicate with the markets. If they improve corporate governance and stop giving wrong timelines then people will trust the company more. Appointment of Mr.Acharya is a good move.

[Anonymous]

@Odysee well said very pertinent and basic question asked, but nothing they are replying instead of only hope. Sorry to say the meeting on 5th October is seeming now just waste at least price movement showing and it matters price movement in penny. Going slow in business, but pretending to be slow is a bad example. Lot of smoke, management should clear. Suppose god forbid, if covid continues 2 years then how daum will be settled how LOC possible these are the questions we should throw. No body expected in wildest dream this monster corona will remain so long now what is plan B. Someone wrote don’t sell good days coming as Mr.Suresh told. My question give me the reason of it. Please do something which help investors confidence. grow. It’s not about distrust, but rather a good solution for long term investors. Really feel bad for long time investor.. They have believed in you sir and your management. To be honest, I invested only 6 months back.

[Logan]

@Antu, the people who went to meet the CEO did it to get clarity on many issues. The meeting was not a waste at all in any sense, because of them we all got clarity on Axis, LOC, Daum and many other topics. You should be thanking them and you really should appreciate their efforts. They went to meet with the CEO during pandemic times, tell me, how many people are ready to do it?

You can’t relate stock price movements with the meeting. The meeting was done to get clarity on issues and not to jack up the prices.

[m4max1979]

I think if the promoter was sincere to us in concall and to our representatives who met him last week about being very close to getting LOC facility then I feel that share price reversal would start and all legacy issues would be sorted one by one.

While I can complain about company not keeping its promise, I can also understand how difficult it is when cashflows are tight and that too in the middle of peak business season.

[odysee]

Thanks for your thoughts on this matter @Logan.
But ,surely , by this time the BCG management should be crystal clear on the path to take. If the in-principle approval for the LOC was received a few months ago, and SKR stated in the conference call that his expectation was that the LOC would be in place by August but didn’t happen because of the final pending issues of the recipient entity, as well as other potential lenders wanting to get on board the consortium of lenders, surely by now ( mid October) the matter would have been resolved.
And I agree that the BDO report should not be made public. Just a clarification that they are still retained and undertaking an audit or helping in the ( now stalled) consolidation.
The shifting stance and poor communication is very unsettling.
I am sure many investors on this forum have also held senior management positions as well as worn the CEO hat in large public enterprises.
I repeat what I had stated in an earlier post – your word is your bond, Mr Reddy, and you must soonest inform your shareholders if any shift takes place which is at odds with what you had conveyed earlier. The long term investors hang on to every word you utter and usually try and give it a positive spin to calm their minds and frayed nerves.
Will they ever be rewarded for their faith and patience and hope?
Or will Tomorrow ( things will get better) never come.

[Anonymous]

@Logan. I am thankful to the forum whoever went there and I mentioned it so please god sake don’t misunderstand me. The meeting happened only because those individual took the responsibility so I am not that idiot that I will be ungrateful to them. Now tell me one thing, when from forum certain things to clarify some queries sent, but no reply from management so is this practice good from management. Actually during corona time, they had to travel why because management did not bother to answer that attitude is not acceptable. I know what those individuals responsibility they took in fact I should see it sacrifice. I am owe to them and it will remain same life long. It doesn’t not matter whether share price go down or up my respect for them always remain same. But management response to me just waste. Instead of questioning my writing, question should be ask why they didn’t want to reply and in turn these individuals had to travel. My conscience is clear to me. Again, I am repeating I am thankful and moreover owe to them as their good deeds speaks for them.

[lycos.rags.to.riches]

@Rathi_b, @sateanna During your meeting with SKR did he give any concrete timelines. I know Axis and LOC is not under his control, but finding a stable investor is under his control, it gives me jitters because he was not able to find a investor for the OAK shares when he knew well in advance the fund is going to end and the shares would be coming in the open market. Not sure how he will find a investor now.

[Logan]

@Antu, I’m not questioning your writing here or I did not misunderstand you, it was you who wrote that the meeting was a waste and I gave my opinion on that. You have also mentioned about price.

There’s no denying that the management has to improve on transparency and in fact we all have been putting pressure on them to improve that. If you see the topics we are discussing, most of them are concentrated on improving corporate governance. Most of the queries that we sent to the company during conference calls were on that subject. We are doing what we can do on that and if the company doesn’t improve then it’s not our responsibility.

[sateanna]

@lycos.rags.to.riches No specific time lines as usual, Axis : The ball is in Axis court, BCH has given its proposal, Daum : After LOC is received, which is apparently quite near. New Investor : He said the process in on, based on the Investor meet from 14th to 17 sept, for which we have asked him to update the exchanges about it.

[lycos.rags.to.riches]

Thanks @sateanna. This might be a dumb question to ask. Do you see any difference between face 2 face interaction and conf call interaction with SKR. Generally we will be able to make a guess if a person is honest with his response during direct interaction. What do you think. SOrry for asking such a dumb question.

[sateanna]

Perfectly sensible question. In the concall he might sound a bit irritated or arrogant some times, but face to face was much better. I really appreciated the fact that he was out on some work and immediately agreed to meet us cancelling his other appointments. Else why should a CEO meet a few retail shareholders, he could have very well avoided us. On the face of it he looked genuine and concerned. Looked honest and sounded positive.

[odysee]

Just to set the record straight @lycos.rags.to.riches, Mr Reddy mentioned about the arrangement with a potential investor/investors for the Oak holding in January of 2020. Then COVID came along and unsettled the world.
SKR did mention in the conference call preceding the September call, that the old arrangement was becoming unstuck and he was trying to get Oak to offload the stock in an ‘organised’ manner to avoid undue disruption in the market. That unfortunately didn’t happen and Oak must have rushed to sell when the price suddenly moved up to around 12.50/13 which was possibly above the agreed price in January, which value may have been higher than the then prevailing market price but nowhere near 12.50/13.
Circumstances prevented an orderly exit, and Oak must bear some of the blame for being opportunistic even though they were optimising their ‘return’ ( reduced loss on investment) to the extent they could.

[Author]

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