[Raja]

Dear hw_tw,
I agree with you, also having worked outside India in a multi- national corporation in a senior position, my thoughts are,
1. The process of FA may be done and dusted
2. Short listed / finalized candidate may be announced in April
The trading pattern of 28th and 29th, maybe based on the above.
Best wishes to all BCGians

[Anbuviji]

What we have missed appreciation on our share after the extraordinary Q3 result & jealous bonus announcements, we are getting post bonus and will multifold after the Q4 & this Financial result along with addition of Mediamint revenues (or next financial year) and subsequent audio tech acquisition announcement. Great going after FA panic selling created by naysayers though it is normal & healthy for the multinational trending adtech group to show their dignity. Keep calm & enjoy while on rally.

[Abhishek]

Dear All, DH and Logan, Please share your view on latest update posted to exchange. I could see this a masterstroke and now promotor’s holding will go up to more than 30%.

[JackSparrow13]

Brilliant Backdoor entry by promoter. This master stroke seems to have been planned long ago. This is what happens when retailers dont value their shares, inspite of PE being less than 1, for multiple years.
Btw, this is an appreciation post to promoters. Perfectly smart legal play. When retailers were wondering why promoter was not buying his shares, inspite of low price, the promoter came, fooled, and may conquer the shareholding war…

[vgsatwork]

Big Picture news from the latest update is a very BIG POSITIVE that Promotors have increased their stake by about 14% + from their initial value of 19.14% as of 25th Jan. So, as of date, promotor stake is 33%+, which is sizeable.

Having said that, the disclosure is raising more questions in terms of who is holding how much shares as most of declaration in terms of # of shares held by Promoter and promoter group are incorrect and is not consistent with 25th Jan SHP or cumulative acquired stakes from Aradhana,Sarita,Shalini & Kalpana Commo Sale’s notification.

Looking at the last share holding pattern published on 25th Jan 2022, Promoter and Promoter group had about 23,32,84,604 shares. Of these 23 crore shares, Suresh Kumar Reddy had about 9,41,05,816 shares. As of 25th jan, Promotors and promotor group together had about 19.74% shares and Suresh Kumar Reddy had about 7.96% and Vijay Kumar Kancharla had about 6.56% stakes.

Update from Aradhana commo sales indicates, promotor holding prior to acquisition has been mentioned as 4,24,31,791. This is far lesser than (Only about 45% of Suresh kumar Reddy’s Personal holding as of 25th jan 2022 SHP) what we know as Suresh Kumar Reddy’s holding from 25th Jan 2022. Looking at the disclosures, the acquisition seems to have happened in this sequence Aradhana commo sales–>Shalini Sales–>Kalpana Commo Sales–>Sarita Commo Sales. Post the inclusion of these 4 entities in Promoter group, the promotor shareholding is being mentioned as 22,36,81,791.

Compare this to TOTAL promoter shareholding as of 25th Jan 2022 of 22,32,84,604 shares, the increase is ONLY 3,97,187. This is absurd. The numbers simply isn’t adding up.

The questions to get clarity on are
1. Why promoter & promoter group shares have been indicated as 4,24,31,791 shares in Aradhana Commo Sales’ update on the acquisition (Other numbers are incremental update on this number), whereas the Promoter shareholding as of 25th Jan SHP is 23,32,84,604. Even if we assume that these documents are not referring to promoter group as a whole and only represents Suresh kumar reddy’s personal holding in BCG, still it is not right as the declared number is only about 45% of his shareholding per the 25th Jan SHP. What happened to his remaining shareholding?
2. What happened to Vijay Kumar Kancharla’s Shareholding?
3. Between SKR, VKK, they were holding 14.52% out of the total promoter holding of 19.74%.
4. Why the company has not issued new SHP given that between 25th Jan 2022 and the bonus record date of 16th March, they had issued shares to FPI and Shankar Sharma.
5. Given that the Ex date has long past for bonus, an SHP was to be published before publishing any change in SHP of the promoters. Why the ex bonus SHP has not yet been published?
6. Whether all other promoters have ceded their share holding or reclassified as non promotors?

Need more details from the company to clear all this..

[odysee]

The shareholding pattern as of 31.3.2022 is likely to be out within the next few days which will provide full disclosure.
Unnecessary speculation with undertones of doubt is unwarranted at this point of time.

[odysee]

Good points @Logan. You will recall that there was a fair amount of chatter at the time of the preferential issue of convertible warrants at Rs 7.70. But there were possibly very few ‘takers’ outside of the promoter/management known circles as the company credibility was low and some outstanding issues were being blown up by naysayers and company detractors.
Further, the stock was still available in single digits for a longish period of time for the retail investor. The market price had dropped to below the preferential price and there were hardly any takers apart from the old faithful lot on this forum.
But it is time that a financial/ capital market savvy professional is inducted by the management speedily. The positions of CFO or President-Finance or Director Finance as well as the Company Secretary ( and Chief Compliance Officer) must be filled up within this month itself.
You have always spoken of a desired improvement in corporate governance and communication, and even though great strides have been made by the BCG management, the rapid growth/ scale/ expansion / visibility being witnessed now requires a concerted effort by the management.

[m4max1979]

Hi Guys,

Should we be worried about the forensic audit as it has been a long time since the notice was published and as per clarification provided by the company, they have been providing information regarding forensic audit to Delloite much before publishing of notice towards end of Feb this year.

[Vroom]

Hello
Its been almost a month since the record date for bonus issue but I haven’t received them yet. Has any member of the forum got any emails regarding that?

[vgsatwork]

I had sent an email to investor relations email id about the bonus share 3 days back. No response to my email…

[vgsatwork]

It has been 7 days since I had sent an email to Investor relations team of Brightcom group on non receipt of bonus share and no update from the company even after the due date as indicated by the company in it’s notice to the exchanges dated 25th Jan 2022 (BCG had indicated that the bonus shares would get credited by 24th march 2022). Today I have sent a follow up email and have asked them to register this as a formal investor complaint over non receipt of bonus share and non responsiveness from the investors relation team of brightcom group. I have also indicated that if I do not hear back on this email within a reasonable time, I have no other choice other than to register a complaint with SEBI. Let me wait and see if this email evokes a response from them

[Logan]

Netflix may introduce lower-priced ad-supported plans, marking big shift

Netflix will work on creating an ad-supported version of the service over the next year or two, Reed Hastings said

It’s good news for Ad-tech companies like BCG that most of the streamers will start putting ads on their platform. I knew these companies will start ads in the future but didn’t expect it to happen so soon.

Netflix tanked 35% today because it lost subscribers for the first time in a decade. Raising subscription prices doesn’t change the trend and adopting ads supported plans is the better option. Last quarter also the stock tanked 20% or more. It’s 52 week high price was $700 and now it’s price is $225.

The industry trends are changing, some are favourable and some are not. There are both tailwinds and headwinds. Don’t know when something will change (People are already buying real estate on Metaverse). Next is the phasing out of 3rd party cookies on Chrome. Don’t know whether there’ll be write offs/impairment for this.

[Raja]

1. SS share has been officially alloted shares and can be traded only from next April
2. Only after this, Company can credit the bonus share, my guess is, can be this week or month end
3. There are no investors complaints pending…traders note it
4. Pre view of yearly result guidance is available, as posted by the company
5. Latest Share holding pattern is almost clear, as per company presentation
6. FA announcement is pending, it is not in the hands of management
Many long term investors in this wonderful group are aware of all the above

[Logan]

There’s an article on BCG in the morning context website. In that they’ve given some details about the forensic audit and why it was initiated by sebi. I read it today and will share the article by this evening or tomorrow or by the weekend. To read it you’ll have to subscribe to it (399 per month which is a total waste of money). It was actually published in March but I came across it only yesterday. I’ll copy paste it when I get time (as I’m too busy now) and will share it with everyone.

[hw_tw]

My views on recent March SHP

Negative
– Promoter reduced stake by around 1.5% overall … this is not a good sign

Positives
– Pledge percentage decreased
– FII / FPI percentage Increased

Future Hope
Similar to the recent event of SKR becoming partner of 4 LLPs there are chances of he becoming partner in other LLPs too and eventually increase promoter percentage … this is just a guess, we need to be careful till that time

[Brightspot]

@hw_tw, do you mean to say, promoter sold without disclosing to exchanges? where is the disclosure?

[chris]

Some confusion regarding the SHP, actual shares of both SKR and Vijay Kancharla have been reduced to a fraction.
Waiting for a clarification from the exchanges or company regarding the same.

[Logan]

These type of actions by the company/management is the reason investors give complaints to sebi. The management/promoters are negligent or careless or too lazy.

In the conference call and even on live TV the CEO said that the promoters haven’t sold a single share but in the SHP it’s looks like that’s not the case. Individual shareholders’ holdings have also increased.

This is really bad governance.

[Brightspot]

What about LLP acquisition? is it reflecting in the shareholding or it will reflect in next SHP

[odysee]

All the good work done by the management over the last many months that changed the perception of the investing community in such a huge positive manner can be undermined by one perceived careless or sloppy mistake by that same management.
Having said that, I still believe that this was an ‘unforced error’ and a perfectly reasonable explanation and rectification should be forthcoming shortly.
All the more reason that the two important vacancies of CFO and CS be filled up expeditiously.

[Author]

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