[Logan]

@drjaysee, whatever opinions I give will only be speculation right now so let’s discuss about this after we get to know more details.

[Myshport]

Reference #9502

As inferred from this article, the promoters are expecting the price to start moving up.

In any case, once the Axis and Daum cases are settled the stock should find its correct valuation in the market. This may happen soon hence the Preferential Warrants.

[profile inactive, exited bcg]

I have a doubt. Can preferential shares be sold in the open market just like normal equity shares? Aren’t both different? Could someone who knows about this help to clarify?

[odysee]

@dileepvin, pref shares are generally not sold in the open market ( unless listed) as they carry a fixed dividend rate and can be redeemed only from profits or a fresh equity issue.
BCG has not issued any preference shares, only made a preferential allotment of common equity shares ranked at par with the existing equity shares earlier this year. They do have a lock-in period though, and can be traded only when that period is over.

[profile inactive, exited bcg]

@odysee, understood, thanks a lot for clarifying.

[Optimus Prime 06]

Brightcom group improved ranking in fortune 500

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[bhalothia9]

@Admin Could you please start a discussion on the huge delivery of shares observed in NSE from past few days? If this is ok.

[JRS]

Just let me know whom do you prefer

A) A doctor (qualified to the core ) who follows rules of his profession which safeguards him and his business and says “patient life is not in my control so let me protect my business.”

B) A doctor comes out of the regular rules of his profession to save life of patients who came trusting him and says “he came trusting me let me give my best to save him even if I come out of mainstream of my business.”

[VALUEBUYER001]

Hi friends, from Monday onwards circuit filter limit increased to 10%. Seems everything is planned and executed

[VALUEBUYER001]

Seems bright days of BCG are coming.

[Raj]

Bse update.. 34 crore warrants issued. Views appreciated..

[drjaysee]

Dear Logan, Experts/Senior Investors, please share your views on today’s outcome of 36 Crs warrants at Rs7.7.
This mean, more dilution? or the current value should be at least Rs7.7??? Appreciate all your input please.

[odysee]

This is insane unless the information contained in the notice is not clear.
Are they issuing 34 crore shares effectively at 7.70 each?
Can someone please clarify?

[JRS]

34×7.7= 261.8 Crores

However to whom ever it is given, they are liable to pay only 25% of the total 261.8 crores (according to SEBI guidelines) I.e 64.45 crores.
Rest of the amount they may or may not pay before the time period restricted to them.

[JRS]

One problem may be dilution of Shares once the warrant is converted into equity shares,

Does this impact the share price?? As it may lead to fall of EPS, In that case why would one who is buying Warrant will take such a risk.

Not able to connect the dots.Kindly help

[Optimus Prime 06]

Atleast this amount will close axis, daum..I think this shares will not affect the eps for particular time period.

[bhalothia9]

It is simple, price was deliberately brought down so that Promoters can issue warrants at low price, whoever gets warrants would also get fixed dividends every year, and they would also have rights to convert these warrants into equity shares, so if share price goes up, they will definitely do it. In case if share price goes down, how much down it can go any way, they getting a share at 7.7 Rs. Issuing 34 Cr shares is very surprising, that would dilute our current shareholding further around 40% down, nobody can stop them, all major PE investors have already gone, and now majority of the investors are retail investors who most of time do not even vote.

[odysee]

@Logan, waiting for your considered comments. Unless you also are in a state of shock and disbelief as I am.
Could there be another explanation for what is contained in the notice to the stock exchange?

[Deepak]

Raising fund through warrant is totally irrational this time when company is near to loc. Should we assume that loc is not going to happen, that’s why suddenly mangement took this decision.We need to send the email to the company and clarify the step taken by company.

[Deepak]

And again not mentioned to whom it is going to be issued.

[Author]

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