[Optimus Prime 06]

Particularly, I do not want to see any negativity .I travelled 5 years with this share..I really want to thank people who shared their knowledge.giving compliants to sebi may slowdown the process of issuing warrants..I am ready to face any type of circumstances..whether it is hero or zero ..I will hold for another 6 months..

[vgsatwork]

@anand84sharma

This is the excerpt from the annual report of BCG (Page 39, Bullet point #4)
“The Company has fixed Monday, December 21, 2020 as the ‘Record Date’ for determining
entitlement of members to receive final dividend for the financial year ended March 31,2020, if the same is approved at the AGM. Payment of Final Dividend, as approved, shall be subjected to deduction of tax at source, and the net dividend, will be paid to eligible shareholders on or before January 25, 2021.”

Today is the day they have communicated in AR and also if you see, 30th day would be tomorrow, 26th Jan which is a declared holiday. May be that is why they might have given it as 25th Jan in Annual Report.

[vgsatwork]

Raised a complaint through Investor relations email ID of Brightcom group about the non payment of dividend. Hope they respond back promptly..

Attached a screenshot of the same for the reference of others. If any one else has reached out to investors relations on this, please post the response that you get..

Attachments:

1. 

   Complaint.jpg
   

[odysee]

I cannot believe that the directors of BCG would be so grossly careless ( or incompetent) that they cannot meet their statutory obligation of paying the princely sum of Rs 2.5crore odd to the shareholders, and in the bargain risking further damage to their already tattered reputation of poor corporate governance, in addition to exposing themselves individually to personal jeopardy.

[odysee]

@Logan, is there any possibility that Axis Bank obtained a stay against BCG for disbursement of dividend to all shareholders including the promoters, till such time as their dues were cleared or settled? Mind you, there is no intimation to the Stock Exchange of this if so.

[Sobha]

We have seen the NCLAT orders. No such reference to dividend was there. Likely that Warrants are most important for them. For that they are ready to accept falling reputation. Now they can narrate cash crunch. It will justify warrants.

[Myshport]

Reference #10279

I have sent the following email to Investor Relations.

Non receipt of Dividend Ref.No. Folio No.:1203040000103569 Name: RAMESH SHARMA

Ramesh Sharma <14razer@gmail.com>
8:59 PM (0 minutes ago)
to ir

Dear Investor Relations,

Ref.No. Folio No.:1203040000103569
Name: RAMESH SHARMA

In the 21st AGM of the company, held on 28 Dec 20, the company declared a dividend of 2.5% which was to be paid by 25 Jan 21. I regret to state that NO dividend has been credited to my account till now.

I am sure that you must be aware that as per Companies Act 2013 the company is required to make the payment within 30 days of declaration of dividend, failing which the company is liable to pay interest @18% per annum for the period of default.

Please ensure that the dividend is paid urgently to avoid the interest payment.

Please also note that, in case of default, I will be constrained to lodge a complaint with SEBI.

Please acknowledge receipt.

Regards,

Ramesh Sharma

[vgsatwork]

@sobha

Quoting your message “Now they can narrate cash crunch. It will justify warrants”

I don’t think they can say that since they have been sitting on principal approval for LOC. If they say that, then it means all is not well with LOC, about which they have not intimated to shareholders. Last shareholder update about LOC is all rosy…

[Logan]

@odysee, I don’t know anything about that topic. I think @nitin_asce or @vgsatwork will have better ideas on this.

See, all this comes down to corporate governance. As I always write, they have to appoint a board member (or someone as an employee) who can handle things related to the market and shareholders. That person can guide the management properly and he/she will make sure that proper information will be shared with the investors. I don’t think Mr.Acharya has experience in public companies and I think he’s more into marketing and related stuff. Even Mr.Reddy after being a CEO of a public company for more than 8 years still doesn’t know how to communicate with the market and shareholders. He thinks that conducting quarterly conference calls are enough but as we all know its not enough at all.

As Warren Buffett and Charlie Munger say this all comes down to circle of competence. WB says “The important thing is to know what you know and what you don’t know.” This quote perfectly suits Mr.Reddy. There’s no doubt about his business skills – he has built a company from scratch with his hard work and efforts but he doesn’t know how to run a public company.

He’s lucky that there’s no activist investor like Carl Icahn invested in BCG. I don’t like the idea of activist investing and I like relationship to be smooth between the management and the shareholders but sometimes we need activist investors to unlock true value of a business. They’ll be like necessary evil. As retail investors we can’t be activist investors because we’ll not have enough shares. We can get together and form a group and we can become activists but that will take a lot efforts and organization. It’s easy said than done. Not everyone will be in the same wavelength. For example, some investors have bought shares 8 years back and some have bought very recently. Both their approaches will be very different.

They should use some amount in that 260crs to improve corporate governance. I don’t think the IR department knows what’s going on and they are very horrible. I don’t think all the blame should be put on them because they follow the orders from the management. They won’t be knowing what to say to the investors without consulting the CEO. I don’t think we’ll see any improvement in corporate governance till they close off all the pending issues.

[Sobha]

@Myshport, I have also sent almost same mail to Investor Relations.

[vgsatwork]

Ref #10282

That could be a possibility, but if it is the case, they should have notified the shareholders as it does not augur well for the reputation of the company. Consequently, Axis Bank issue should have been resolved on war footing, as there is a risk of Axis making a submission in the court about the same and it would have reached the media/public even as the management was keeping quiet about the same and it would do irreparable damage to company’s reputation.
Given that Axis issue is still out there and the risk to companies reputation if the news becomes public, I really doubt if it is the case…

[Rathi_b]

We ( Hyderabad team ) have reached out to SKR regarding the warrants issue, LOC and other issues again. This time we have sternly made up our minds to get proper concrete answers to our questions with proper tentative timelines. We hope to receive a answer at the earliest. We shall immediately update if we receive any response tk our queries from SKR. It is high time now that we are dignified with proper answers.
Thank you.

[VALUEBUYER001]

Thanks dear Rathi_b Ji

[buffet]

I am just wondering -looking at these sorry state of affairs will any reputed investor ever invest in BCG? Such tarnished mess SKR has created. Wise CEO could have taken such company in sunrise sector to greater heights.

W.r.t. dividend, even aarthi consultant don’t have any info. We always wanted to resolve all outstanding issues before any dividend payout. Now they can’t pay. Such a shame. Additional fuel to the operators.

I don’t believe bcg can’t pay 2.5 crs. I think just to get through warrant approval they are creating this cash crunch. How many dirty tactics SKR will employ to further his agenda? How many times we have to be patient? Lies after lies to fill their coffins with shares at throwaway price. SKR like person doesn’t deserve to be CEO of public company.Better he should announce buyback of remaining shares and make bcg private entity. Atleast it would end our misery for good.

He and his operator friends almost owns 80% of company. Still his thirst is never ending.

[VALUEBUYER001]

Buffet I think it is fill their coffers

[J.Bedi]

First of all, nobody was interested in 5 paisa dividend (against painful patience of past several years). But when he announced it, it seems that they are serious about company’s future and its image among investors. Now they are not keeping their own words (forget about what we presume). And after such handling of dividend issue, we can expect what sort of big investors BCG could have got for its warrants issue. In service industry (especially in IT sector), promoters does not have much to suffer. But intangible asset – Corporate Governance is what matters. Either SKR is doing it deliberately or his team is not capable enough to manage BCG.

[vgsatwork]

If they cannot keep their commitment of paying 5 paise dividend, I don’t know how we as retail investors trust anything that they say, especially forward looking statements?

[odysee]

Title- ‘Slaps in the face’ of retail shareholders.

Grand announcement of Consolidation of 12 overseas subsidiaries ( one year ago) as it is easier to present one set of accounts and more meaningful. Timeframe indicated appropriately 6 months
Result- Not done/ pending

Appointment of BDO Global to assist in the consolidation exercise
Result- Zilch/ No update

Arrangements made and buyer firmed up for Oak divestment to ensure no open market sale and maintaining stability in price.
Result- Total quantity comprising about 7% of equity sold in the open market contrary to promises made. The pandemic arguably played spoilsport.

Axis bank settlement and closure of the account ( 8 months ago)-Stated that it would happen any day and we should take it as done.
Result- Still outstanding and date after date after date deferred at NCLT.

LOC in the pipeline. Against consolidated receivables of the 12 ( to be) consolidated subsidiaries. Due diligence being done and BDO closely involved. Timeframe -by June/July 2020.
Result- Almost done ( for the last 6 months).

Surprise and sudden announcement of a massive quantum of convertible warrants at a throwaway price to random parties ( no reputable big investors).
Result- pending but will result in huge dilution and totally against the interest of long term retail investors.

Token dividend proposed months ago to kick start confidence building measures in the investor community
Approved at the AGM on 28th December 2020, payable on or before 25th January 2021.
Result- Not paid. In danger of default unless miraculously paid on 27th January.

Almost forgot-
Daum settlement- take it as done. ( please do as not too important in the context of the business but important to settle all outstanding litigation )

I shall not refer to various commitments made in the quarterly conference calls on clarifications relating to receivables/ debtors/ other current assets etc. Suffice it to say no action was taken post those calls.
Sheep bleat- like we retail shareholders too, but to no avail.

[buffet]

Dear BCGians,

BCG will raise almost 260+ crs through Preferential warrants. Is thr any possibility SKR will use same money to buyback whole retail holding with PW money? SKR and his friends almost holds 80+%. He just needs funds for remaining 20%. Looking at this whole drama, I think it’s very much possible.

Apart from taking over AI/ML firms + increasing promoters holding thr proxy accounts, what could be possible motive for this huge dilution?

I would appreciate if someone could further elaborate the outcomes of PWs.

[odysee]

@buffet, the buy back scenario appears unlikely. Even assuming 20% of the capital with retailers, that comprises about 17 crore shares ( capital- post warrants conversion – 85 crore shares of Rs 2 each).
A buy back at even Rs 15 per share would cost them Rs 255 crore. Assuming all retailers succumbed.
Would you sell at Rs 15? Or even at Rs 20?
Unlikely. As the perceived intrinsic value is significantly higher.
Apart from bringing in the much needed cash in the company for growth/possible acquisition/ settlement of dues etc. , I would speculate that the new shares would eventually end up with some big investors and the promoters themselves. Don’t forget that post the warrant conversion, the promoter holding drops to an unacceptable 22% odd. Not maintainable.

[Author]

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