[drjaysee]

Dear @vgsatwork and m4max1979, Thanks for your replies. I do understand that some people are always sit ideally and misguide the genuine investors by creating unnecessary panic. Even I got tempted to send some reply to that guy but it’s not appropriate to react / reply to their views. I am utilizing this opportunity to grab as much as possible and I am sure, in a week time everything will be changed once the dividend is released (on of before 25 Jan) & many will run behind BCG to catch which may not possible. Good luck to all our BCG investors and Forum members.

[lycos.rags.to.riches]

It is difficult for me to understand why LOC and warrants are linked. I assume warrants will not be required if LOC is approved.

Warrants for Muskaan is blocked
Warrants for 54 share holders approval in progress
LOC in progress.

Are we saying if all issues are resolved BCG is going to get more than 500 crores.

[Rathi_b]

The warrants issue should reach its logical end, either accepting it or not, the exchanges should come out with an answer. It is my personal opinion that the management will keep delaying things until then. They know that their business is going to prosper in future,so they wouldn’t mind to keep us suffering until they get what they want. Axis Loc or Daum I think they can settle if they intend to, they are not short of money in anyway. They will do nothing until this issue of warrants is settled. This is my personal view I hope you people won’t confuse it as the hyd group’s objective opinion.

[drpram]

I think all are interrelated..PW is required to close Axis issue. Once it is closed, the objection for raising LOC will no longer be there and LOC will come.. LOC will settle Daum issue..the overall problems will be solved..Am i right??

[Rathi_b]

LOC is generally done by provisioning for outstanding issues, it has been under process for what over a year, certainly Daum and axis must have been provisioned when discussions with lenders was done. This my personal opinion, I think this charade of issuing of warrants is only being done because the people know they are getting it at a huge massive discount to what would the price would be after outstanding issues are settled. Buying shares in open market wouldn’t be this cheap in future. Again my personal opinion nothing to do with my responsible investors from Hyderabad. Please remember SKR said he wouldn’t be raising stake before issues are settled, but I feel he is now going back on his word.

[JRS]

@Rathi_b

Do you still believe SKR is trustable personality. I am asking this because you met him in person, and you were very much confident on his plans.

If you feel like not replying to this question, you can avoid.just asked with curiosity.

I am personally loosing faith on SKR. It is not because his plans are good or bad, but he talks something and does something. He is not man of words or integrity, I am feeling.

Even in his YouTube videos he speaks big things, but he is engaging with so many investors who act like operators. This is why I was sceptical about warrants.

Really confused whether to trust him or not.

[J.Bedi]

All the optimism for last 2 months is fading now. Again Hope’s were given a fly but fearing of extending dark times. I am not worried about lower circuits but the way script is behaving like pendulum. Worst part of story is they declared dividend after so many years (to reward shareholders and improve Company Image) but no credit till now and Rakesh Bansal now telling on YouTube that few persons have approached him that they could make him interact with Skr for stake discussion. But he denied to go ahead due to Kolkata based jockeys (operators) active in script. We have seen long wait in past years while seeing all other scripts grow. It is not we had ever think of with such robust numbers quarter on quarter..

[JRS]

I am doubtful whether he is trying to pump black money into the system through warrants(by the way he is bringing so many investors).

Usually this is the way how black money gets operated in societies.

I still have a doubt on the write off, where he would have collected and made outside settlement with the parties from whom BCG/Lycos was receivable and received it in black. And now he is trying to reinvest through these investors in the form of warrants.

Also I fear he may repeat this write off to the huge surplus accumulated in balance sheet,in the form of receivable, and convert them into his black money.

Hope I am wrong in my assumption and things are all good.

[Rathi_b]

We are here because we believe that this organisation has a bright future and I am not going back on that belief. I am just in personal capacity venting my view on the delay in warrants. I for one believe that we have many goods to come. Many milestones will be broken. All I am saying is it frustrating that we are still being kept hanging after all the developments we were privy to. All I want is to move on man from these trivial issues which I believe the organisation is unnecessarily draging to make the most of their present opportunity. I believe that SKR is the right leader but it is certainly not wrong to ask questions, I for one can be blatantly wrong, maybe the next few days will be great for us, but it is just my frustration that the warrants are being kept hanging without any finality. I believe that the organisation is capable of handling all its outstanding issues independent of the warrants money and that is the only thing that I am ranting about. He is a capable and opportunistic leader which he should be, which is good for the organisation but sometimes we need to question not to throw allegations but to seek clarity on what, where and how things will be for us.

[profile inactive, exited bcg]

@J.Bedi Could you share the link to the Rakesh Bansal youtube video you were mentioning about?

[profile inactive, exited bcg]

Found it, Rakesh Bansal mentions about operator activity in Brightcom, discussion at 48:30

[JRS]

Watch @ 48:30 on YouTube link shared above

[profile inactive, exited bcg]

Regarding share warrants, it really really looks like retailers are being robbed.
We could also speculate that either the promoters themselves (through benami) are getting the huge number of shares at dirt cheap price of Rs. 7.7; or the promoters are receiving money from behind the curtain from whomsoever the shares are being issued to.

[Logan]

I think he has some other plans for the PW money. He could’ve told those people to buy shares in the open market if it is only the shares that he wanted. All these years (and even now) the share was/is available for peanuts.

Post-PW issuance, the allottees’ holding will be more than 40%. Together with the promoter group, the total holding will be more than 60%. If those people started buying from 3 to 7 or 8 then they could’ve easily got 25% of the company for peanuts (to make up that 60%+). There are some other plans which the company is not telling us. Maybe an acquisition?

I think he needs money (cash) so he must have told them – anyway you are investing, why don’t we make a deal where we both benefit from it. The allottees will get their shares and the company will get the cash that it always wants. If they bought in the open market then the company won’t get that cash – it’s the basic stuff.

Now, he can’t ask them to buy the shares at 20+ because these people won’t agree to that (they could’ve easily bought them below 5), so they come at a price that both the parties will agree on – 7.70.

I think these people were the ones who were supposed to buy Oak shares but once the price went up they were not comfortable to buy.

(This is just my theory/speculation. Like everyone else, I also hate this issuance of warrants which dilutes the shares so much. Please ignore and don’t take it seriously if you don’t find this post useful).

[profile inactive, exited bcg]

@Logan
It is difficult to understand why the company needs money from warrants at this stage, when LoC is so close. And the promoters definitely don’t intend to communicate the reason for warrants issue to the shareholders.
Secondly, I don’t think the operator activity is happening without the knowledge of promoters. They could intentionally suppress the price for issue of share warrants. I feel that the promoters are totally aware, and are working together with the operator gang. Given the situation, it is very difficult to believe otherwise.

[Rathi_b]

@Logan I disagree with that speculation and this why. Last time they raised they did 100 million, historically its highest valuation was over 800 million. If I have to expect that they are raising anything in the form of LOC, both those factors would have been taken under consideration also keep in mind that valuation was pre Daum. If they now have to raise an LOC it would not be a minor amount, certainly it must have been done keeping atleast a few years of growth in mind, which should also include allocation for any acquisition along with provisioning of outstanding issues and general business transactions (payables and receivables). This game is being played because they know that this is the last time in its life that it would trade at such a low number. They know once issues are settled they will never get anything less than atleast 10-12 p/e. Please don’t mind calling me out on this one, I know I am being harsh( because I have immense respect and gratitude for this forum).

[Logan]

@dileepvn and @Rathi_b, I’m not denying the manipulation of prices but my point is why go through these legal processes if he doesn’t need that cash? If it is shares that he wanted he could’ve simply asked those people to buy it for him and later he would’ve got them.

If you remember in 2015-16, he wanted to buy MySMS for 100crs and he was ready to give them shares instead of cash. That time also he didn’t care about the valuation.

Warrants approval requires legal actions. There are many rules and regulations for that.

Also I don’t think he wants the LOC to come to the parent company. If you remember in one of the calls, he said the same to a caller.

[Logan]

And the last amount that they raised, it was equity not debt. Valuation matters more while raising money through equity sale than debt. With the LOC, he’s keeping the receivables as collateral so I don’t think they consider the valuation part of the company. If you see many mergers and acquisitions in the past (mostly in the US), many smaller companies have bought bigger companies maybe twice their size using debt (leverage). That time most of the banks will look at the size of the business more than the valuation.

Also You are not harsh at all. I don’t mind us having these discussions. It’s very important that we have these meaningful discussion so that we understand the situation well enough. If my views are wrong then I’ll change them in a second.

[profile inactive, exited bcg]

@Logan
I don’t think he will be able to buy those many shares from the open market.. if he tries that the share price will definitely shoot-up.
Long term investors like us are not going to sell our shares at these low valuations.
Also, I feel whatever volumes we are seeing in the market these days are only due to operator activity (with promoters knowledge).
I think the promoters are getting very greedy here.
Also, please remember even in AGM they did not mention of a single reason on why the funds are being raised right now. I think if they had a valid reason, they would have revealed it. They wanted to avoid that question. They very conveniently skipped the Q&A as well.

[profile inactive, exited bcg]

I feel that if these price manipulation continues, we will have to collectively make a move and register complaints through SCORES portal.
A single complaint would not make a difference. But if we do it collectively in an organized manner, it might have an impact.
{Pls read Qstn no 24 here: https://scores.gov.in/scores/Docs/FAQ-SCORES.pdf }
We can wait for a few more days and decide.
I hope all of us are on the same page that the price is definitely manipulated by operators.

[Author]

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