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June 30, 2022 at 9:50 pm #14370radhutheoptimistRegistered Boarder
But… Unless there is a scope for increasing the share holding why would the promotor go for such an elaborate risky transactions. Since the share prices were less than 5 the pledge value wouldn’t be significant. The whole process took place only to increase the holding. So the end result of this operation would result in increased share holding by the promotor which is good in a way.
Hope we will come to know the actual figures by next SHP.June 30, 2022 at 11:21 pm #14371
I was digging through the NSE System driven disclosures – Insider Trading(PIT) report for Suresh Kumar Reddy and Vijay Kancharla. One of the first available record for SKR is as of 5th Nov 2020 and the next record is on 28th Nov 2020 and between these two dates, SKR has sold(or pledge was invoked) 26 lakh shares for 2.11 crores (Average price of 8.11 rs/share) and after this transaction, had shareholding of 1.33 crore shares left with him (including pledged shares). That is the last transaction for that quarter. But the SHP as of Dec 2020 shows SKR’s shareholding as 7.52 crores. That is a gap of 6.19 crore shares between what was being shared with the investors/public as his shareholding and what is available in the system driven disclosure – Insider Trading (PIT) report available in NSE…
Similarly for Vijay Kumar Kancharla(HUF), per this report, shareholding as of 22nd Dec 2020 is 1.89 crore shares, whereas the SHP of Dec 2020 shows the shareholding of Vijay Kumar Kancharla (HUF)as 6.2 crore shares. That is a gap of 4.39 crore shares
So, the case of missing shareholding probably goes long back, but we as shareholders were not aware of the same since the SHP did not reflect this numbers until Mar 2022 SHP that got published on 21st April 2022June 30, 2022 at 11:33 pm #14372
For now, what probably keeps any company from making a hostile takeover bid for brightcom is
1. LLP, FPI holdings – If they are proxies of Promoters, then very difficult to acquire bulk stake
2. The fact that there is a cloud around the company’s accounts with the Forensic Audit order by SEBI. Any company that is considering a hostile takeover attempt would have huge challenge in determining the right price to pay without having the clarity on the books of the company.
The moment the FA thing gets cleared, people can value the company properly and hence there would be an attempt for takeover. Promoter has to acquire enough stake to avoid such an issue and whatever time it takes for the same, the smoke around this may not be cleared/clarified.July 1, 2022 at 11:29 am #14373
Between Dec 2019 SHP and Jun 2020 SHP, The promoter pledged share count had come down by 5.31 crore shares (From 11.53 crore pledged shares in Dec 2019 SHP to about 6.22 crore pledged shares in Jun 2020 SHP). If we assume that the Pledged share count is the only reliable shareholding in the sense that they were still within the demat account of the shareholders, (Given the claims in the investor cell letter in which the shares that were transferred out of the promoters share were also being counted and shown as promoter shares as they had voting rights based on the agreement that the promoters had with the buyers of the share) one can presume that promoters had only about 11.53 crore shares in their demat account as of Dec 2020 and it had further come down by another 5.31 crore shares by June 2020, signifying that the stake they would have had based on their demat holding would have been only about 13% and it had been reducing gradually since then. But due to the supposed agreement that they had on voting rights (Again, assuming that the content of the letter to be authentic), their SHP continued to be shown as 39.14%, that’s a whopping gap of 26%…
That means exercising 3 times the voting rights as opposed to a normal person who would only get voting in propotion to their shareholding in the demat account.
It is in this context, some of the controversial Preferential warrants of 34 crore shares to the LLP’s were approved through shareholder voting in Dec 2020….7+July 1, 2022 at 12:02 pm #14374odyseeRegistered Boarder
That’s very good detective work @vgsatwork. Now where exactly are we headed with this?
Until we get the official SHP released by the company as of 30.6.2022 and any accompanying clarification, we may have to wait till the next conference call for for a possible detailed clarification on the math that you have so deftly conducted.
For the sake of all long term and recent investors, let us hope that the management continues to lead professionally and progressively, and the business of the company continues to be robust as per guidance, and that we all eventually prosper with our investment.
The Corporate Governance, including timely and transparent communication, of course, needs a major overhaul.July 1, 2022 at 12:29 pm #14375
Promoters could have acquired all the LLP allotted shares just like the way they did acquire four of them in Mar 2022. The fact that it did not happen smoothly in Mar 2022 and subsequent price destruction (from 102 Rs on 01 April 2022 to 31.65 on 30th June 2022), seem to suggest that the remaining LLP’s may not be coming into the fold of Promoters easily and that would keep this uncertainty and price action with downward bias.
If the promoter manages to get these LLP’s back in their fold, atleast price destruction would stop. Corporate governance issue would continue to hang, which would not let the price rise back up.
Regulatory action could bring in lot of negativity in short term, but the pain would be shortlived and the issues would be cleaned up once and for all for long term price stabilityJuly 1, 2022 at 8:58 pm #14376July 2, 2022 at 2:54 pm #14378chrisRegistered Boarder
I found the article wonderful, in the sense that it was brief unbiased history of the company. Pending issues have also been raised.3 minute read clarifies a lot for new investors regarding name change and transition of the company and its business over the past decade4+July 2, 2022 at 3:00 pm #14379nitin_asceRegistered Boarder
I think yhe best part was in the end. Even if promoters sold the shares(promoters claim there is no selling) they bought LLPs to increase the shareholding.
Generally promoter selling is a negative point since it shows promoters does not intend to run company over long term and the growth may suffer. However sometimes there are other reasons as well.
So if the LLP come into promoter fold then why to worry. However things are not clear and may get cleared in 1-2 quarter time.6+July 3, 2022 at 5:07 pm #14380LoganRegistered Boarder
People were worried that the promoters had sold after FA was initiated and that’s why they were nervous and BCG being the model company when it comes to communication and corporate governance, didn’t inform investors about the pledge thingy and that made investors more nervous. Add to that the increase in supply by giving bonus shares and the negative sentiment around it for crediting those bonus shares too late made matters really worse. As others have pointed out, all these confusions could’ve been avoided if they informed the same thing few months back when the SHP was released.
After seeing the explanation by the management about SHP I think people got little relief (that promoters didn’t sell those shares during FA news and it was because of pledge issue). CFO appointment also played a role. People were worried that no one will come when FA is going on but a new CFO was appointed.
Regarding SHP confusion we should talk about it in the conference call. In the queries that we sent, he didn’t answer that and only answered when someone asked about it specifically. So I request investors when they call to please ask that question and try to get a proper reply from him.
Markets anywhere don’t want uncertainty and people want communication with investors to be proper and transparent. If BCG follows that then we won’t see volatility in prices. Just look at Tanla and how they have changed in the last 2-3 years. Tanla too had many doubters (it still has) but when the communication is proper then everything will be better. There are many other companies that adopted better investor relations and they are doing very well (of course market factors too matter).
Some people are excited about BCG coming out of ASM list but I don’t know whether it’s that good. With all the rules and restrictions only operators will manipulate but if those rules aren’t there then I don’t know that they’ll do. Being an investor and not a trader I’m not worried if there are restrictions to trade. One thing I want is the stock should not be in UC or LC and it should trade normally. Maybe that would’ve happened if they had not given the second bonus shares. If stability is there then people won’t be anxious all the time.July 3, 2022 at 7:43 pm #14381LoganRegistered Boarder
There’s a video about BCG where they’ve mentioned things like receivables, SHP, cash flow etc. I get it, he tried to analyse the company and said whatever he felt about it but saying things like BCG is not a tech company and its only an advertising company doesn’t make sense to me. Not every ad-tech company can have the Cost Per Converted User (CPCU) model like Affle does. And Affle concentrates more on mobile apps whereas companies like BCG do business on every medium i.e. mobile, computer, CTVs, e-mail etc etc. BCG also has CPCU and Non CPCU models and it depends on the clients requirements.
Then about receivables it’s a known topic in the adtech industry. They compare only with Affle but not with companies like TTD, Magnite, PubMatic etc. These companies have more receivables than their revenues. Even payables are more than revenues and hence more cash on hand. Without credit you can’t do any business. If you check bigger companies, they don’t have huge receivables as they have hundreds of vendors/clients and all the vendors/clients will be in queue to do business with them. Those companies can dictate terms to smaller companies but can a company like BCG dictate terms to it’s clients? In fact it has to be flexible with it’s clients needs and not the other way around. If companies don’t have this issue then almost every company will become giants. Every industry will have problems, for example, for some companies higher crude oil prices will be very bad but for oil producers higher crude prices will be a boon. Steel and other commodity companies thrive when the economy does well but after that they’ll suffer a lot. FMCG business most of the time will be stable, they can increase price and still people will be okay with that. Hotel and tourism will do very well during holidays whereas other times they’ll suffer.
You don’t see receivable issues in Google, Facebook, Amazon etc. Google has more than $150B in cash. Facebook has more than $50B. Amazon has more than $80B. How do you compete in an industry that has these giants? They can crush you if you are not flexible to your client needs. You let your clients pay you later so that you can survive and grow.
Same with cash flows. You have to invest to survive/grow. Also you’ve to look at other avenues like CTV, audio ads etc.
Then regarding SHP, I blame the company for lack of information. People assume many things because proper information is not available. I can’t comment on this without having enough information.
Before investing people have to check all these and they should invest only if they are aware of these important things. If they consider these to be red flags then they shouldn’t invest.July 4, 2022 at 4:50 pm #14384chrisRegistered Boarder
I keep noticing this trend again and again, as the stock price starts to rise, all the negative comments disappear.
As the stock price goes down people tend to get critical of logans comments on this forum, literally targeting him, SOME OUTRAGEOUS statements have been made in the past calling him the CEO of BCG (SKR himself) who is writing comments on this forum to trap gullible investors.
Similarly on Twitter as well all the negative comments have disappeared, nobody is calling for SKR’s head.
I think it’s time for all of us in this forum to take a decision now, to invest on facts, on pros and cons of the company, on the business and stop acting on emotion associated with price action and social media.
Everything is out there, there is no other forum like this one where you can find out about the company, unbiased facts no opinions. I think it’s time to take a call when the price action is on an uptrend.July 4, 2022 at 5:55 pm #14385JackSparrow13Registered Boarder
Appreciate the sentiment.
Also appreciate the leadership of Logan during past few days.
There is a simple and peaceful way of holding brightcom. Dont track brightcom news/gossips but only dividend. Brightcom has a dividend policy of distributing 15% of free cash flow. if company grows steadily, dividend will grow. and I have received dividend more than enough times to confirm, that Brightcom pays dividends.
Attachments:July 4, 2022 at 6:16 pm #14387ramganesh1982Registered Boarder
Hi Admin and others ,
There was one link where other stocks were discussed .is that active now ?? Can someone share the link ??2+July 4, 2022 at 6:29 pm #14388July 5, 2022 at 10:12 pm #14389
Pls clarify if dividends is rec’d by all or not and if not by when is it expected if anyone has any idea3+July 5, 2022 at 10:58 pm #14390ramganesh1982Registered Boarder
Thanks Jacksparrow13 for sharing the link
Ram2+July 6, 2022 at 7:46 pm #14398VALUEBUYER001Registered Boarder
Shri Manish Ji, we can get 30 paisa dividend after approval in AGM, which is likely in September 2022. So dividend likely in October 20228+July 7, 2022 at 6:37 pm #14400
Thankyou @Valyuebuyer001 for updating the info3+July 9, 2022 at 8:39 am #14404
With every passing day as we see prices rise higher….. One thing after all the controversy in the last 3 – 6 months maybe for SHP Appointment of senior positions Bonus allotment Issue of Bonus n many other things is now becoming very clear n crisp that this prices will never be seen again what come may on the market horizon…. Volumes n Price indication clearly says all of the selling spree has been absorbed including that of Bonus shares by the FII n Retail combined
Now going forward what we can expect is price consolidation somewhere between 70 – 100 n than a huge spurt if everything goes n Management doesn’t take any out of the way decisions like issuance of Bonus last time which was unnecessary n without any value…..
Let us be hopeful n looking forward for a Consistent N Transparent Management Vision from here on… Though this price is not at all satisfying buy by bringing a halt to downside it has actually brought a lot of relief to the pain of small investors in the short term not happy but relieved very much can be the final conclusion for now……
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