Tagged: Clarification of Transaction.
March 26, 2022 at 10:26 am #13797March 28, 2022 at 1:09 pm #13801BrightspotRegistered Boarder
Hello guys, please share your thought on YSR garu exit, isnt that management responsibility to update on FA , suddenly posting CFO leaving is not good in this time !! even though he is retiring not resigning, a person responsible for audit is leaving and management not interested to update on FA3+March 28, 2022 at 1:16 pm #13803chrisRegistered Boarder
As a follow up question, what is really interesting is the volume traded today and the NUMBER OF LARGE DEALS. Can it be taken as a sign of a positive FA outcome or is it just my biased (invested) outlook!!!
Your views on it please !!!3+March 28, 2022 at 1:23 pm #13805chrisRegistered Boarder
@brightspot, irrespective of whether YSR is in or out, he will be held equally responsible if the FA goes south(again my assumption), since SEBI is scrutinising finances during his tenure.
Has the audit been completed after which he is resigning, a theory which I feel is in support of the large deals today.
Again just to make it absolutely clear I have no proof or evidence of either theories, just a thought process trying to understand the intimation given by the company. Either way this week should be crucial.March 29, 2022 at 9:33 am #13806hw_twRegistered Boarder
Is there any link between FA and CFO’s exit
My view is clearly NO for the following reasons
– CFO has RETIRED as he has crossed age limit and has not RESIGNED
– There is no timeline set for FA completion … It can take few weeks to many months as seen in other cases
– Holding someone for another few weeks or months is clearly not an option … Corporate world prefers certainty about the dates so that they can work towards finding a replacement … It a difficult process and takes lot of time to find replacement (will discuss this later)
– Lastly we are not aware of his Health condition and his ability to continue even if the company wants to … I am happy that BCG has taken an employee’s first approach by not holding an employee for whatever reasons especially when someone has worked for such a long period … he doesn’t deserve any kind of pressure tactics from the company for whatever reasons and would definitely needs a graceful exit without any hurdles
This also sets a right example for the new comer as they can join confidently with full knowledge of what’s happened about FA and how company has treated employees even in difficult situations without holding them to stay in the company for their benefits
Thanks YSR gaaru for all your valuable contributions behind the scenes and wish you a Happy and Healthy life aheadMarch 29, 2022 at 12:15 pm #13807hw_twRegistered Boarder
BCG should have appointed a new CFO by now as they were aware of this exit
This thought crossed my mind the very first time when I heard this news and I felt they should have closed it by now, but when I thought for a while and I recall some of my hiring experiences in corporate world I feel it is rather common to have delays in hirings … the challenges arise from multiple angles, in terms of finding the right fitment and many other external factors which are not in your control
In terms of right fitment, some specific challenges this position brings in
– One person – This is a single person post heading a team and not a team member position where in you can hire and still live with that person even though the person is not upto the mark … You need to be extra careful making sure that the person is the right fitment in all aspects
– Face of the organization – He will be the face of the organization representing it in multiple forums like in Analyst meets, Investors calls, Mergers & Acquisitions, Nasdaq Listing, Road shows etc; … and especially give that BCG is fast growing, touching Billion dollar in sales with operations expanding in multiple countries he would be required to have a good understanding of latest technology, legal compliance apart from accounting standards and systems followed across the world
– No replacement – As mentioned above, you just can’t hire and fire as it is not only waste of time and money but also reputation of the company will have a huge impact apart from many others
– Connect with the business – For the CFO to stay long, he needs to connect with this AdTech business and believe in this growth story … Its like a co-founder position where the person is connected to the business right from the beginning… In this case SKR has to make sure the new CFO is connected and carries the same passion as the founders
Huge delays happen when it comes to tech people hirings irrespective of levels … It gets delayed because of HR policies like 3 months notice and the candidate declining offer in last minute or not turning up even after accepting offer … I guess this problem may be there to a certain extent even in Finance people hirings … Apart from this budget is a big problem in tech hirings and most of the times we need to increase it just to close the position in time
Note that the official FA news came in around a month back and I am sure his exit and replacement would have been planned even before that … I attribute this delay is purely because of finding some right fitment and some typical recruitment challenges
Having said this, I feel BCG could have scored some brownie points had they announced a new CFO along with the exit … they still can and hoping they will with some right hiring …🙂
Anyway, it is mentioned that they have shortlisted few … hoping they find some good quality and reputed people taking the mantle from YSR and steer the organization to greater heights …💲March 29, 2022 at 4:01 pm #13808RajaRegistered Boarder
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 BCGiansApril 1, 2022 at 12:47 pm #13813AnbuvijiRegistered Boarder
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.April 6, 2022 at 1:00 am #13814AbhishekRegistered BoarderApril 6, 2022 at 8:18 am #13815JackSparrow13Registered Boarder
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…April 6, 2022 at 12:31 pm #13816
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..10+April 6, 2022 at 3:44 pm #13817odyseeRegistered BoarderApril 7, 2022 at 12:11 am #13818LoganRegistered Boarder
I think they should’ve mentioned about this when they issued the warrants. Why simply complicate things and make people point fingers at you? In stock markets it’s always better to give proper information at the right time. No investor will complain if the promoters increase their stakes in companies. I know they did it in a legal way but going this route will attract unnecessary criticism and scrutiny. Maybe they didn’t have money at that time and asked their friends and may be they’d have done some agreement where the promoters would buy their stake at a later date. It’s all speculation now and we’ll get a clear idea on this only in the conference call.
Good thing about this is that they did it in a legal way which was approved by the exchanges and the company got cash for this deal.
Now it’s no longer a small company and it’ll attract both admiration and critisism. They should look at improving the corporate governance and the image of the company.April 7, 2022 at 8:10 am #13819odyseeRegistered Boarder
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.April 13, 2022 at 1:31 pm #13823m4max1979Registered Boarder
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.6+April 13, 2022 at 3:35 pm #13824VroomRegistered Boarder
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?6+April 13, 2022 at 8:07 pm #13826
I had sent an email to investor relations email id about the bonus share 3 days back. No response to my email…5+April 18, 2022 at 9:00 pm #13828
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 them14+April 20, 2022 at 8:42 pm #13830LoganRegistered Boarder
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.April 21, 2022 at 6:48 am #13831RajaRegistered Boarder
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
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