April 14, 2021 at 11:15 am #11595sac6310Registered Boarder
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 #11596
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….
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 10:06 pm #11604jay69Registered Boarder
Its good to know that the company has allotted about 33.14 crores shares to 54 investors & also has received 25% application money for the issued preferential warrants (PW) with this the company has got some cash for its further growth & expansion.
I wish & hope that the allottees will not wait for 18 months for conversion of their warrants into equity shares if the stock moved substantially higher from the current levels so by early conversion (in the next 4-6 months) the company will benefit immensely as a total of about Rs 260 crores (approx) will flow into the company which will boost cash availability of the company for various important projects, if the conversion of PWs into shares happens after 18 months then the cash flow from the warrants will also be delayed which will not be as beneficial to the company plus even the allottees will have more delay in conversion due to lock-in period of 6 months (18+6=24 months).
The management of the company should now focus on quick growth in sales & profits (both organic & inorganic) but they should also remember past mistakes & act accordingly,the management should also increase focus & manpower in investor relations department so that everything worked smoothly because currently its one of the weakest part of the company, the top management should also ensure that the corporate governance is also substantially improved so that the company earns the trust of markets & investors.7+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+April 17, 2021 at 5:24 pm #11611
Sorry, Correction, Its still in ASM LT1.1+April 17, 2021 at 7:20 pm #11612sac6310Registered Boarder
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”
#frustatedBCGian15+April 17, 2021 at 10:51 pm #11613
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.13+April 18, 2021 at 1:42 pm #11614LoganRegistered Boarder
@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.April 18, 2021 at 3:13 pm #11615
@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.7+April 18, 2021 at 6:44 pm #11616
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.April 18, 2021 at 7:36 pm #11617
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 !!!April 18, 2021 at 9:33 pm #11618VALUEBUYER001Registered BoarderApril 18, 2021 at 11:01 pm #11620
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