[Follower of Logan Sir.]

Sorry, Correction, Its still in ASM LT1.

[sac6310]

I can relate BCG price to an advertisement.

Few days there was a deo advertisement on TV in which a girl used to say to a guy that “baki sab to udd gya but aapka deodorant reh gya”.

Same happening in BCG , “sab(mostly) events to uda gye but aapka price wahin reh gya”

#frustatedBCGian

[buffet]

@DH, @Logan
Please share your opinion on recent PW allotment with 25% funds but conversion still pending & recent SHP.

W.r.t. recent SHP, where Goenka’s 15% holdings went? So much secrecy. It’s no secret
G-gang were SKR’s pawns. Not sure who absorbed it & when SKRs greed will end.

[Logan]

@Diana and @buffet,

My assumptions were based on either of the following

1) Company receives full PW money

2) Company receives 25% PW money

Now we know latter is the case, we can guess that he’ll use PO money also to make any deals. If it’s for getting back Lycos then 65PW+31PO=96crs, which is close to $13M. Rest may come from internal accurals or maybe the settlement amount is less than $16M. Someone wrote in this forum few weeks back that Daum sold some of Lycos assets like Gamesville etc, so there’s no point in paying full amount when some assets are already sold.

This is just a guess because no one has a clue what he’ll do with that money. He may even use part of the funds for the acquisition but last time he said that it’s better to close Daum issue in one-go instead of making 2 or 3 transactions. Daum will be lucky to get $13-16M now for Lycos. Remember the deal was done 11 years ago and that time Lycos was valued at $36M, but now it won’t be worth even half of that.

As for it’s impact on valuation, I really can’t guess how the market will react now. It may cheer the news because there won’t be any outstanding issues remaining or it may not care at all. So, whatever guesses we make will be of no use but the good part is that since all the issues will be done and dusted, if any “new” good news comes (like LOC or business growth) then there’ll be nothing to hold the stock back is my opinion.

As you know, I’ve always said that for me Axis and Daum are not that important and I care more about growth of the business than these things. To get that growth, LOC is important. And getting LOC has another important benefit, it shows that the books are clean and that banks are supporting the growth of the business. Some people in the market think that the numbers BCG is reporting are fake etc, these people don’t know proper information but will always try to influence others. Some make this nonsense allegation because they think that consolidated numbers aren’t audited. If we explain the auditing process to them then these cheap people call me paid agents etc. So to shut these people, getting LOC and acquiring other companies is very important.

[buffet]

@logan thanks for explaining PW money use in details..I agree that LOC could be game changer and will bring credibility to the numbers.

On SHP, I am still wondering where those 20% shares(Goenkas + priya prakash) went? Who would have acquired it and why it is being hidden under various sections in shp.

@drjaysee were you able to decipher it. I remember your took paid membership to get detailed share holding info.Please share if you have any additional info.

[Follower of Logan Sir.]

Good article on PW. While preferential allotments can help raise capital, the 18-month gap for convertible warrants is skewed in favour of the promoter.
“For a small shareholder, it’s irrelevant whether the promoter is paying all the money upfront or over 18 months”

A promoter of a listed company is allowed to directly increase his ownership primarily through two mechanisms””creeping acquisition and preferential allotments. Preferential allotments are usually positive for the small investors. One, under the creeping acquisition route, a promoter can purchase a maximum of 5 per cent of the equity in a financial year through the stock exchange at the prevailing market price and the seller may or may not have the knowledge that he is selling to the promoter. However, a preferential allotment is announced to stock exchanges and investors are aware of the promoter’s intentions.
Two, a preferential allotment has to be at least at the highest closing price of the previous 15 days and usually this represents fair valuation. Three, a preferential allotment envisages the promoter investing money in the company against fresh issue of shares. This is far superior to a promoter buying shares from an unsuspecting shareholder.
Four, preferential allotments can aid mergers and acquisitions or in raising capital. For example, when a company plans to enter into a joint venture with a strategic partner or raise capital through a financial investor, this results in a promoter’s equity being diluted. A preferential allotment would allow a promoter to maintain his shareholding at a fixed price. This would encourage the promoter to go ahead with the proposed transaction. Such events and transactions usually add to shareholder wealth.
Five, a preferential allotment is a strong signal to the investment community of the company’s future prospects. Recently, Mukesh Ambani increased his stake in Reliance Industries by 5 per cent through a preferential allotment at Rs 1,412. Investors were free to purchase shares at around this price from the stock exchanges for quite a while after the announcement was made. Similarly, if the terms of a preferential allotment are blatantly unfair, unwarranted or shareholder-unfriendly, investors can take a negative view and exit the stock.
In many cases, preferential allotments are made by way of convertible warrants. A convertible warrant is a security issued by the company which can be converted into equity at a fixed price any time over 18 months from the date of issue, usually at the option of the holder. Under Sebi regulations, a warrant holder has to pay a minimum 10 per cent of total consideration at the time of issue of warrants and the balance at the time of conversion. This structure allows promoters to increase their stake at a fixed price by paying just 10 per cent of the consideration and paying the balance over 18 months.
Prima facie, this does appear to be skewed in favour of the promoter or the warrant holder. However, for a small shareholder, it’s irrelevant whether the promoter is paying all the money upfront or over 18 months. The small shareholder should look at the circumstances of the preferential allotment like intent and purpose, pricing and the promoter’s track record and take a decision to buy, hold or sell.
In the case of Reliance Industries, the promoter has issued warrants to himself but this is not relevant to the shareholder, regardless of whether he is subscribing to fully-paid shares or through convertible warrants. Investors who looked at Mukesh Ambani’s track record, intent and pricing and viewed the preferential allotment positively and purchased Reliance Industries’ shares after the announcement of preferential allotments, doubled their money in eight months.

[Follower of Logan Sir.]

With regards to equity dilution,Not a major cause of worry as Warrants are converted into shares at a future date ideally before 18 months from the date of allotment. And the remaining amount is paid after the warrants are converted into equity shares. Warrants are issued because the capital is required in the future date. Both the instruments are issued at specified prices as per the Sebi guidelines. And if warrants are issued, there is no immediate equity dilution.

Our company is on strong footing with excellent set of earnings from past few years compared to earlier years. Second it is getting flushed with funds so that it can go for creeping acquisition which handled properly can result in great profits year upon year. Further Granting of LOC will indeed result into total change in the scenario. A game changer for sure. No two opinions on it.

Waiting game with definite price increase with time. Keep patience. Do not give up a single share. Hold it tightly. I am 100 percent sure. Save this message. Cheers !!!

[VALUEBUYER001]

Brightcom group share recommended in money times for hefty gains

Attachments:

1. Brightcom_Group-Hefty_Gain.pdf

[drjaysee]

Dear @buffet (#11615), I am waiting for the latest SHP to be uploaded at MCA website and let you know the detailed split-ups/distribution soon. Thank you.

[admin]

Thanks @drjaysee

[lycos.rags.to.riches]

Anyone having any idea on the release of pledged shares after Axis loan closure.

[lycos.rags.to.riches]

We are not seeing any improvement in share price even after allotment

[Follower of Logan Sir.]

As a norm, Release of pledged shares should happen as soon as loan amount is paid in full. For price improvement, We will have to wait for some more time.Patience, Patience & More Patience.

[JRS]

I find investors who met SKR at Hyderabad office have gone silent now a days, especially after meeting SKR.

Curious to know whether they have some confidential input from SKR or if they have lost hopes on this stock.

I see strong possibility of Information regarding LOC have been shared to them and asked not to disclose. Good if it is so, but concerned that SKR shouldn’t dodge them with fake documents.

[JRS]

@Rathi_b

Last time you hinted something regarding the back door entry SKR is planning, if you are comfortable could you share it.

[Rathi_b]

@JRS I’m searching for the answers myself. Yes it’s obvious that such huge dilution cannot be made to happen unless the CEO gets a good share of the pie. It’s naturally understandable. But now my focus is on getting updates regarding LOC. Since the start of our interaction with SKR axis has been settled. He then got the PW done for himself. Now the other issues LOC and Daum are pending. We are focussing on those issues. My only concern is the events we are looking for are getting done slowly at a snail’s pace one after the other. But the price movement is not really encouraging. We will update from Hyderabad once we get a clarity. But right now with dire situation outside we are really helpless.

[Follower of Logan Sir.]

Slow & Steady wins the race. All the other issues so far has got resolved with time, So is the case with LOC & Daum Guy. It will also happen, Wait for it. Hard core investors never panic & Stay put & patiently wait for things to emerge. I repeat a waiting game. So We have to wait for things to fructify. Cheers !!!

[lycos.rags.to.riches]

Yes Kris, Patience is a very familiar term in BCG, we have been hearing few words like ‘Patience’, ‘light at the end of the tunnel’, ‘inflection point’ for years now in BCG.

[kmr003]

Initially Mr. SKR promised LOC will be done in 4 months, this is 8th month no update,
To boost credibility of BCG and big investors to pick

1) Life line is LOC by U.S big bank or Lender
2) Showing growth for 2 or more Quarters ,
3) Settling the legal issues with DAUM
4) Making use of PW, PO funds for new initiatives
5) Improve Corporate governance,
6) Mr. SKR should avoid giving false timelines
7) Mr. SKR Should should implement things little faster, things are moving very slow.
for example : 2-3 yrs back had updated retail investors queries will be addressed faster , still no one gets even acklowdeged email.

Hope by end of this Quarter 1 at least we will get some good news,

[drjaysee]

Dear Friends, I had gone through MCA website for the latest SHP of BCG. But until now there is no update and still only last year March 2020 SHP is available. May be it will take some more time to get the update from BCG to MCA. Apart from that I have noticed that BCG has the Authorised Share capital of 97.5Crs in which so far they have utilized 83.84Crs (50.66Cr of current + 33.1485 Cr of latest PW). Hence, BCG can utilise / issue around 13.6Cr more shares in the form of further PA / QIP (which is not good for further dilution but may be good to strengthen the company).

[Author]

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