[Rathi_b]

We will however discuss about it( warrants) with him. If any other important questions please put in.

[vgsatwork]

I don’t know if legally it is right or wrong (For a preferential warrant allottee to be involved in day trading of the same scrip while the resolution is about to be voted). But it is definitely improper and does not give the impression that the investment from such allottee would be long term. There is a disclosure as part of the annual report (page 52)that says proposed allottees have not sold/transferred any equity shares during the last 6 months preceding the relevant date. The relevant date here being 27th Nov 2020. Hence technically the disclosure is not incorrect, but this certainly is impropriety

[Remesh]

Though the director is the same, the name of the entities are different. So you can’t prove that it is illegal. But now it is quite clear to everyone that some of the allottees are known penny stock players.

[JRS]

I feel write off what SKR did is a loot.
He will definitely write off all the receivables or some part of it, as he has tasted it earlier. He may receive some amount out side a system in black.

I have never seen a CEO handing over preferentials to operators.

He kept he has no idea of operators like G gang.Thanks to forum members who caught SKR read handed for his direct contact with operators.

My blood boils seeing all these things, even though ai invested very recently.I really feel the pain of investors who trusted him and waited for so long.

He will come to streets or go behind bars if he is operating this destroying investors money.

[Rathi_b]

My patience will runout after the AGM. They need to give strong updates on LOC and Axis before that. These charades of preferential warrants needs a strong reassuring answer and if any we are going to strongly confront him with this Zuber Zaveri nautanki.
Let me make it very clear to everyone that if this meeting doesn’t allay our concerns, our approach needs to take a 180 dive. We cannot be made fools of with these unnecessary “forward statements”. New year with new approach is what I strongly believe in. I hope I have made my intention for the meeting very clear. Any stupid audit report or functioning capabilities of the company can take a back seat for this meet.

[buffet]

@Rathi_b: Thank you! This time it can’t be business as usual. I hope, something meaningful will come out of it. I pray for mutually beneficial outcome. Just think of how diplomatic SKR is – even after 2-3 meets+endless conf calls, he didn’t even give a hint of what’s coming.

Please do ask, why he didn’t consider the open proposal for warrants? We all could have subscribed as per our capacity. Anyway, he has done the same involving 20-30+ operators/entities. Why did the board favor group of folks/operators? On what criteria?

I can sense it. There is something big coming. Not sure which direction. We all should prepare for it. If the need arises, we shall hire corporate lawyer representing us.

I hope better days ahead & hopefully, our patience will get rewarded handsomely.

[Logan]

Either it (the issuance of warrants) must be very good or it will be very stupid. The CEO has chosen to do it just before the AGM which means more scrutiny but without knowing why these warrants are issued how can we vote to approve it? The management team, the board lack basic common sense.

For many years the company failed to gain value recognition but now thanks to interest in new age companies, material developments (and also because of Affle listing) there is value recognition but value realization hasn’t yet happened because of the pending issues. When we were close to it, Axis case happened and now when we thought we would get past all the issues (with the help of LOC), we have to worry about the dilution of shares. Though that dilution may provide the company with capital, it is really bad to dilute the shares by this much when the price is trading at lower prices.

[drjaysee]

Dear @Rathi_b/Admin/Logan/All members, please see the attached details of the warrant Allottee (Source of information collected from open source data which is publicly available at various websites/social media & nothing confidential to hide anymore – everything proved SKR’s capability) for all our reference and this may be useful when you will have meeting with SKR / during AGM for further clarification. Based on the technical potential of BCG, we all have trusted SKR. It seems everything almost went in vain due to the promoter’s unethical behavior. Besides, I would like to inform you that I have sent a private message on Dec 2 (after Pref Warrant announcement) through LinkedIn to SKR requesting his expected amount of stable long term investment which might be arranged through my source of known foreign nationals & shared all my details & contact number for WebEx /Zoom Meetings but no response from him since he has already got his known source of operators and published Allottee list on 4 Dec 2020. This is for all of our information please. Appreciate all the members advice for further step to clarify with SKR directly for the benefit of all the shareholders as well as to protect BCG’s reputation.

Attachments:

1. Pref-Warrants_Allottees-Details_BCG.pdf-1.docx

[lycos.rags.to.riches]

Thanks @drjaysee for sharing the info. I am very curious to know how did SKR even find these investors. Couple of individual investors are being given 40,000 shares around 3 lakh rupees.

[bhalothia9]

Good morning friends, one strange observation, most of these LLPs were incorporated in 2014:
ARADHANA COMMOSALES LLP. 12 Aug, 2014
SARITA COMMOSALES LLP 7 Aug 2014
MANGAL COMPUSOLUTION PVT LTD. 11/4/2011
KALPANA COMMOSALES LLP. 28Aug, 2014
SAHITAY COMMOSALES LLP. 12 Aug 2014
HANSRAJ COMMOSALES LLP 18 Aug 2014

Also, that if I remember correctly, in 2nd last concall SKR mentioned in the end of the call, that time has come for company to expend, to grow. Not sure if those words are linked to this allotment, may be he want to start something new in India.

[Remesh]

//may be he want to start something new in India.//

Wow! And when the company expands its operations in India, may be the ‘G’ group alone won’t be able to manipulate the share price. That may be the reason why he wants to liberally allot warrants to more penny stock operators, right?

[bhalothia9]

We can only speculate, I do not think it’s a right move, and I do not think it’s for handling ‘G’ group. It is possible that these are intermediate receivers and later they sell shares to Promoters. Such large dilution can only be for promoters.

[drjaysee]

Dear Admin and Members, there are lot resemblance /similarities on the ongoing process of pref warrants between BCG and Karuturi Global (superlative penny stock). Karuturi Global also issued Pref Warrants of around 36cr (NCLT issue with Axis same as BCG) to all the so called LLPs including our list of No1. ARADHANA COMMOSALES LLP. That time the share was trading at 8.35 and today the share price is 0.30. I am not at all comparing the business and technicals in which BCG is in great heights as of now considering our technical discussions & informations transmitted from our senior expert members and from their annual reports, global business prospects etc. so the BCG’s business is unique and technicals are no way near to other penny stocks. But the process of pref warrant and issuance allottee list is spoiling all our trust. Still we don’t know what exactly SKR is planning/thinking to do in terms of pref warrants and need for the same at this point in time. If you have enough time, please go through the share holding pattern of Karuturi Global – public holding list where we can see list of all LLPs (I have used Trendlyne). My worry is BCG shouldn’t fall under this kind of situation since it has very good potential considering it’s technicals and business prospects (Digital Tech Trend will continue for another 10 Yrs and AI, ML are emerging fields) especially at this point of pandemic situation. Let’s all be Unite at this point in time and if at all needed we will try to support SKR to maintain transparency and ethical way of running the business / company. If the management is genuine and trust worthy then business will grow like anything even if there is any lacking on the technicals. Hence, at this point in time we will not react a against SKR but we will try to teach him a lesson to how to run a ethical business even though he is graduated from well reputed IIT Kharagpur. Still I am surprised that how come Mr Acharya accepted for this kind of decision of issuing 34 CR pref warrants to the operators since he is a newly appointed Ind Director of the company meant to be direct the company in a right direction of growth. Appreciate your expert views / inputs please to move forward. I am a new investor since July 2020 and holding 8.75L. But I am just surprised about the situation & frustrations of long term investors/senior members who have invested with BCG since 2011 & holding enormous quantities!!! No point of hiding and hesitating to speak frankly and this is the time to react and ask the necessary clarification with the promoter directly and the promoter has to give appropriate justification for the warrant issuance and also about the exact status of other outstanding issues. Personally I feel that Definitely the allottees will try to manipulate / downgrade the price to 1.90 (their actual buying price at this point in time through warrant) and accumulate huge quantities / the entire remaining quantities from retail investors (from us by the way in creating panic and definitely we retailers will sell in loss when it will move towards Rs 1). This might be a plan jointly by SKR and so called highly potential (!!!) LLPs. Let’s all be cautious. I am desperately looking some inputs from our senior members as before since for the past one week there was not much discussions/advices/suggestions from our experts (may be due to the frustrations with the promoter). We should be strong at this point in time and time to react.

[Rathi_b]

We have received a tentative confirmation from SKR for the meet next week. Please send in questions that could be asked during the meet. We will keep you posted if there is follow up developments in this regard.

[JRS]

[JRS]

Check out the Video…found it in You tube….felt informative

[vgsatwork]

Let us speculate for a moment. Any promoter in the world would want such large preferential warrants at cheap rates to be issued to themselves in order to increase their stake, if major business uptick or share price surge is expected. In case of BCG, promoters have only 36% stake and any such proposal would be defeated by by the public shareholders and the promoters would know that and hence they have declared that promoters are not party to this preferential warrants issue and the board has chosen these selected individuals who would be getting the warrants upon shareholder and regulator approval. In this particular case, the amount of dilution (if public shareholders are not getting the preferential warrant and the allottee are people acting in concert with the promoters) for public shareholders is going to be from 63.24 to 37.64% at which level public shareholders would not have any kind of leverage to defeat any of the proposals put forth by the promoters for voting thus giving them absolute control over the affairs of the company. No sane promoter would cede management control of the company upon equity dilution and the annual report that is what the management is saying would happen post exercising of warrants by these allottees by saying that they are not party to this.

Having said all these, somehow the promoters are counting in the support from shareholders to pass this resolution w.r.t. preferential issue and the only way on earth it can happen is with the support of key public shareholders who have sizeable stake (including G gang). Again it is foolish to count in their support, if ultimately their stake is going to come down significantly. One has to give something to get something back.

So, what do you think is the game that is being played here and what we can do as individual shareholders?

[drjaysee]

Dear @admin, somehow my message(#9738) has not appeared which was posted before 10 minutes. Please have a look on to it. Thanks

[vgsatwork]

@Rathi_b Thanks for getting this arranged. I have made a complaint to investors relations yesterday late evening through scores portal of SEBI indicating the Zaveri trading’s bulk trade and that it is linked to the beneficiary of the preferential warrants saying that it is highly improper since I am not aware of specific irregularities, but this being impropriety. Hence investor relations has to provide an update and close this complaint in next 30 days as the complaint is being tracked through sebi’s portal unlike direct emails to investors relations which can be pushed under the rug. So, it is safe to assume that SKR might be aware of the same through the complaint received from investor relations

[odysee]

What a sorry state of affairs.
A CEO we venerated for all these years has suddenly lost all support from his diehard supporters on this forum.
His lack of transparency and inability to keep his word, plus the overriding compulsion to deny any reward to his shareholders, has been a slap in the face for all of us who fought tooth and nail to eulogise him despite many events and actions that suggested a more objective and realistic assessment on our part.
But then, such is the nature of greed, that prevented us from calling a spade a spade.
This latest surreptitiously devised proposal of his on the convertible warrants has laid to rest any hopes of a meaningful recovery in the stock price, apart from dramatically reducing our relative stake in the company.
So all of us whose average holding price is significantly higher than his gifted price to new operators and their cronies can now bid goodbye to all the hopes we have been nurturing for the last few years.
Amen!

[Author]

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