Tagged: General Discussion
- This topic has 5,122 replies, 164 voices, and was last updated 4 hours, 29 minutes ago by whyShares.
April 13, 2021 at 11:32 am #11584
Allotment can happen only after board approval and initial money being paid by the allottee. Calling for board meeting is no big deal. But the fact that it has not yet been called for only indicates that the PW allottees do not have the money for the 25% upfront payment yet and once they arrange their finances, board meeting could be called for with 48 hr notice and the allotment will happen on the same day upon 25% initial payment. This is my reading of the situation.5+April 13, 2021 at 11:55 am #11585
@vgsatwork: but only 3days(72hrs) left in 15day time limit for first 25% money payment and allotment which is making situation nervous.4+April 13, 2021 at 12:26 pm #11586Srd.rdxRegistered Boarder
I will be more than happy if nobody subscribes to warrants and company does not raise funds diluting at 7.7!
I don’t know if price will crash or will rise if allotment fails but it will certainly be in favour of long term Patient holders by not diluting at pathetic 7.7!5+April 13, 2021 at 1:24 pm #11588
I don’t think there is any kind of time limit as to HOW SOON the board has to allot the PWs once the exchanges approves. I am not sure why you feel it should be 15 days from the date of Exchange approval. But no matter whenever it approves, the 25% money needs to be paid immediately(on the very same day) and that is the reason why they are keeping quiet without announcing a date for board meeting to consider and allot the PW’s.3+April 13, 2021 at 1:29 pm #11589April 13, 2021 at 1:31 pm #11590April 13, 2021 at 3:01 pm #11591April 13, 2021 at 7:11 pm #11592
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My guess is that he wants to use the LOC funds only for organic growth. He hinted about this in the conference call too. Inorganic expansion doesn’t guarantee you profits, and cash flows. I don’t think there’s much use in Lycos either to count on that for cash flows. Since LOC is a debt/loan, the company has to pay interest on that. If we assume the LOC amount as 500crs and if the interest is 5% then he’ll have to pay 25crs at least. For inorganic growth (which includes getting back Lycos) he needs $15-20M for that audio ad company and for DAUM he needs $16M so combined he needs $30-35M which is close to 260crs which is the total PW amount.
Taking 250crs from the LOC won’t help the company so he may have chosen PW. After getting the LOC, if the profit increases so does taxes. Taxes depend on profits and not on cash flows so even if the company doesn’t generate cash, it still has to pay cash (taxes) on the profits made. So not only the interest payment that he has to look into, he has to worry about taxes too. On top of that the new govt in the US is planning to increase corporate taxes from 21% to 28%. The company has to consider all these things. So it’s better to use LOC funds for organic growth and use PW funds for other things.
In FY20, BCG paid 190crs taxes, in FY19 it was 168crs, in FY18 it was 181crs and in FY17 it was 176crs. The rates decreased in FY19 and FY20 because of Trump’s tax cuts. So if the business grows and if tax rates are increased, BCG’s taxes may increase to 250-300crs and with that if we take interest on LOC (say 25-50crs) then BCG has to dedicate 250-350crs cash. From normal operations, all these years, BCG paid at least 200crs in taxes and debt payment.
(All these are guesses and speculations so don’t take them seriously)April 14, 2021 at 6:36 am #11594whySharesRegistered Boarder
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Mentioned in December AGM notice page no 23 :
9. Proposed time within which the preferential issue shall be completed
As required under the SEBI (ICDR) Regulations, Warrants shall be issued and allotted by the Company within a period of Fifteen (15) days from the date of passing of this special resolution provided that where the issue and allotment of the said Warrants is pending on account of pendency of any approval for such issue and allotment by any regulatory authority or the Central Government, the issue and allotment shall be completed within a period of Fifteen (15) days from the date of receipt of last of such approvals.
As nowhere it is mentioned as “working days”, I assume 16th April as last day to approve the allotment . Else it would be considered as terminated.
any comments/view from other members ?April 14, 2021 at 10:07 pm #11596buffetRegistered Boarder
Promoters and gang are crooked.They are capable of finding N number of ways to get around it.Live example is recent dividend distribution. Many folks have not received it yet.. regulators &;SEBI are just mute spectators.. Sad thing is retailers can’t do anything even after N number of complaints..pathetic state of affairs..
For penny things they are missing the bull run of lifetime..Recently Subex started bull run out of nothing..Not sure in which world Needy is living.. their is saying – your word is ur character in business.. Now question is do these guys have any character? Accordingly, we can set our expectations.. Looking at all these happenings in last 8 years I suspect they don’t have any.. pardon my words guys..20+April 15, 2021 at 8:12 pm #11600Srd.rdxRegistered BoarderApril 15, 2021 at 8:25 pm #11601Diana HortonRegistered Boarder
My Dear BCGians….
# 11598 @sac6310 #11596 @buffet #11593 @Logan
BCG announced the PW approval by the exchanges on the last day of the March. Today Culminates the 15th day. Hopefully, we are to expect the News about the PW allotment very soon.
It is Very important for the Needy and thereby Indirectly to all of us.The rules of the game are simple. The Needys Needs ARE TO BE Satisfied. Unless this happens, The Long drawn drama will not come to a culmination.
Looking at the scheme of things that has happened so far, All seems to be going in the Right direction.Pending Problems solved. Needys Needs are being met with. The Company has announced plans and given Directions for the near future.
The announcement of the PW will let us know, as to what % has been subscribed and whether 100% payment has been done or not. AS it is Warrants, I suspect only 25% downpayment will happen and in due course of time 100& payment and conversion will happen.
Going through the post of Logan #11593, about the utilisation of funds of PW and LOC, It is certainly an intresting postulation. Lets take Logans Postulate into practical application. PW funds are to be utilised for Inorganic Growth related needs and LOC funds to be utilised for Organic Growth.
The calculation of Logan states expenditure upto 260 Crs for Inorganic needs of Daum closure and getting back Lycos and a Hefty Acquisition of Audio company.AS of today, Our BCG should be having 64Crs in the kitty from the PW 25% down payment , considering allotment was 100%. This is approximatly 9MD. Whether the funds are going to be utilised immediatly or after receipt of 100% funds, will determine the closure of Daum and news about Acquisition, I guess. Or, The other possibility is , part payment of both in the big scheme of things and come up with the news.
@Logan…, Your expert views and opinions are welcome on this pet subject.
The very fact that BCG came with an announcement regarding Acquisition gives us some clue that, the End acquisition product has been vetted and near finalised. Unless this has happened, I suspect, No company will come with any forward looking annoucement.
PW, although is a Significant dilution of the Equity shares, we are going to accept the same on an imposed manner and we better see the good side of things, which are
1. Needy Needs satisfied
2. Indirectly benifitting us – All the retail share holders( as , nothing will happen unless the Needy is happy)
3. Proper Utilisation of funds- Closure of the Legacy Daum issue and bringing back Lycos
4. Inorganic Growth via Acquisition
5. Organic Growth with LOC funds as and when announced
Regarding LOC, there are multiple theories. I suspect, This might have materialised a while ago. If the news comes out regarding LOC, the Needys PW might be at Peril and lots of question will be asked regarding the need to PW when, the funds are already there.
Although Logans Postulate seems to make sence in the way of payment distribution of funds(25 Cr Interest at 5%), once again, its my Gut feeling and the same time makes sense that primarily the PW was done for needys needs rather than for inorganic growth.
However, in nutshell, It is double income for the company,whichever way we see it. The RICH but CASH DRY company, will be flush with some liquid cash- both from PW funds and LOC funds.
This is like a gentle drizzle and gentle cool breeze on a hot summerday with signs of greenaries visible at ground level.
……………………….DHApril 15, 2021 at 8:48 pm #11602JRSRegistered Boarder
PW is allotted as published in BSE.
The game starts now, I feel the black money is converted to white now, after 18 months Allotees will not execute the warrant and this 25% remains with the company, this is back door entry or inflow of funds.
Also the share price will not be allowed to rise too much and will be kept in control, after 18 months if BCG makes good profit and gets cash flow it may buy back shares from open market and lead to raise in stock price,else the same old story will continue.
The real picture will be projected in next 18 months.
The above view point is my personal view point and may or may not be true.12+April 15, 2021 at 8:56 pm #11603JRSRegistered Boarder
The advantage for the people who have invested their money if they don’t get the shares after 18 months is that they show it loss in their books and save taxes against that, which is around 25% for corporate tax(in India) and which is 30% for individual tax.
But I am not sure whether a person can take tax benefit for loss of Capital as it is not revenue in nature.
Kindly guide me if I am wrong.5+April 15, 2021 at 10:26 pm #11605
Phew, One more Material development at the right time.Time & Tide does not wait for anyone. Time as well as tide has changed for the good in our company’s case. Price appreciation will depend on the quality of the fuel ingested. Wait for it. Next to toe the line is LOC which will come in shortly. What matters is with these developments the company is all set to go in the right direction as all past hurdles gets removed. For me I was always certain that these developments would happen. At this juncture i would also wish to add that the stock will come out of Asm again from 7th or 10th of May & Along with good results, The stock will propel to new levels. As far as waiting period is concerned ( 18 months ) is too short a period for hard core investors. One has to keep in mind as vidya says If a movie is hit, Its all entertainment, Entertainment & More entertainment. Similarly a stock to perform well its only Earnings, Earnings & More earnings ( Fundamentals ) and as long as fundamentals are intact price/value discovery will happen. Our company will create wealth for us. Cheers & Love you all fellow investors.April 16, 2021 at 9:01 am #11606lycos.rags.to.richesRegistered Boarder
18 Months – Are you guys really crazy, In BCG we never know what is going to happen next month its all if’s and but till now which we investors are assuming. As promised by SKR only if he improves corporate standards we can estimate anything.12+April 17, 2021 at 5:11 pm #11609
SHP declared, Next in line result date followed with out of Asm list from 7Th or 10 May 2021. Thereafter circuit revision. Release of pledged shares. News of Loc granted. Acquisition news. Lots on the plate, A perfect recipe for a tantalizing upward movement in price with time. A sure shot wealth creator. All pls wait for it. Cheers!!!4+April 17, 2021 at 5:23 pm #11610
Just checked It seems, Its out of ASM LT1. Can someone verify it. Thank you.1+
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