[drjaysee]

Dear @lycos.rags.to.riches, already today morning I have sent a email request to BCG to update the partial payment info on the website. Let’s wait and see their action.

[lycos.rags.to.riches]

@drjaysee Based on my years of investment in BCG and their communications of informations to market. SKR will be informing only after the final settlment is signed off by Axis

[lycos.rags.to.riches]

But at this moment each and every small information is valuable to the investor.

[Deepak]

Tanla market cap reached 1 billion dollar today.

[Logan]

I think (guess/speculation) promoters have pledged shares with third parties who act as intermediaries between the bank and the promoters. Once the loans are paid off, they will release the pledge on shares.

If loans aren’t paid on time then it’ll affect the intermediaries too, banks will put pressure on them who in turn will put pressure on the promoters to close off the loans.

I think bankers will have better idea on this.

[profile inactive, exited bcg]

Is it possible that the pledged shares could be used for manipulating the market?

[profile inactive, exited bcg]

Thanks for the reply Logan.

[ramganesh1982]

Thanks for your posts and responses … From your last post what’s understood is that the manipulations could go on till mid 2021 .. with release of pledged stocks in Dec – Jan followed by Daun issue in March probably .. and another round if a strong investor is arranged .. I wish these 3 go in parallel but I doubt this could happen .. so lot of roller coasters ahead ? Please share your opinion on this at leisure

[Logan]

@ramganesh, with BCG, we can never guess any timeline. If Axis didn’t go to NCLT, we wouldn’t have seen this level of manipulation. Looking at the price movements, it’s very clear that the market wants the company to close off Axis case in NCLT as soon as possible.

This particular event overshadowed all the other good events like growth in business, appointment of Mr Acharya, promoter buying shares etc. Even the proof that the company is continuing to pay Axis (when the case is in NCLT) didn’t lift the spirits because the market
won’t recognise half-done things.

Even last year, the company updated to the exchanges that it paid off SBI,and Canara loans and still there was no changes in the price because the market didn’t see any proof for the loan payment but later when it saw the decrease in pledged shares, the price went up.

[Raj]

Bse update. Board meeting on 4th to consider preferential warrants.. Some hope…

[bhalothia9]

Further dilution of company shares, and to convenience SEBI, lots of trading happened in last few days, is this assumption correct?

[profile inactive, exited bcg]

Found this article interesting: https://www.drvijaymalik.com/preferential-allotment-of-warrants-to-promoters/

[profile inactive, exited bcg]

What I could understand is that for the holder of the warrant, it is similar to buying a call option. It will be interesting to see to whom the warrant is issued, and at what price and volume.

[profile inactive, exited bcg]

The holder of the warrant would be speculating that if she/he purchases shares from the open market, her/his average price would be much higher than the exercise price in warrant allotment.

[drjaysee]

Dear @Logan and Senior / Expert members, appreciate if you could share some information on merits & demerits of BCG’s “preferential warrants”. I presume, the price will further go down after 4 Dec until the record date(???) so that promoters and their associated members can grab the warrants at lower levels or they will fix the price higher than the market price? Kindly share your views / analysis in this regard.

[kmr003]

It is difficut to understand SKR, have few queries, don’t kw valid or not

1)If LOC is done by Jan2020 end, what is purpose for warrent issues at lower price ? why con’t they buy in open market ? for same money

2)Last PO allotment process it self took more than 6 months, how many months this will take ?

3) last PO fund is still blocked by bank, wt is garentee this will proceed on time and bank will not block this ?

4) Why to issues at lower price even @10-13rs is less ?

5) more dilution is more liquid ( may be ops tomorrow)

6) What about retail investors weath, they brought all at high level and waiting for more than 5-10 years

7) this will have impact on price, will this supress price between allotment price ?

8) Wt SKR thinking about retail investors, who are patiently waiting for years

9) As in concall he told had taken few mistakes in past , hope this should not be future wrong decision by SKR

10) How this is going to increase trust n credibility n impact BCG ?

thanks

[drjaysee]

Dear @kmroo3, may be promoters are very confident of LOC approval soon, hence currently initiating PW to “specific individuals and entities” who are known to the promoters very well at a lower price and trying to settle the Axis issue at the earliest before the LOC.

[nitin_asce]

Is this issue related to bringing a stable investor into bcg as promised by Mr Reddy.

[lycos.rags.to.riches]

@Kmr003 all valid points. Hope the new investor is having the PAN card.

[odysee]

I presume the warrant issue is more about increasing promoter stake or possibly bringing in some ‘desirable’ investors rather than raising large funds for the business or obligations of BCG.
It is unlikely to be at an option to buy price of lower than Rs 10, but very likely be much higher since usually the time frame is 12 to 18 months from the date of issue. Only a small percentage would be paid by the allottee initially ( say 25%) and the balance only on the option to convert date.
Yes, this would lead to an increase in equity but maybe only increase the promoter holding if allotment to them.
If the conversion price is high, then it’s a positive for the BCG market price and should instil confidence in the public and potential institutional investors.
In any event, this will have to approved at the AGM on 28th December before any issue takes place.
But my assessment may be incorrect as we will only get to know of the actual contours of the scheme post the Board Meeting on the 4th.
Unlikely that this is related to the LOC saga.

[Author]

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