[akkithegrt]

Thanks, Rathiji, for your efforts.

Rather than paying 100 crores in dividends to investors, which might come to around 50 paise, the company should use that money to buy back shares.

[odysee]

@Rathi_b, thank you for the visit to BCG offices and the detailed post.
However, I believe that the key issue of inspecting the audited accounts of the subsidiaries was not accomplished on this visit. This is an extremely important exercise to establish credibility and reassure investors who have expressed doubts in the past. Whilst we on this group remain confident and convinced, there are many who have been sceptical about the audit having being done vis a vis the subsidiaries.
You have mentioned that this verification exercise will be conducted soon. The management has clarified that the audited accounts are available for review by visiting shareholders.
Many thanks for your efforts.

[buffet]

@Rathi_b & team: thanks for meeting SKR. Can you please clarify w.r.t. below issues.

1. Any discussion w.r.t. buyback? Isn’t this right time ? When mgt is going to execute it? If price further falls, BCG may get out of indexes.
2. ESOP. Almost 2 years since trust creation. But haven’t bought any shares till now.
3. Price manipulation by operators. How SKR is planning to deal with the same?
4. SHP issue. When and how many shares promoters will get back if any.
5. Any hint on increasing promoter shareholding from open market ?
6. Preferential LLPs are selling in open market and their day trading activities. Earlier he told that LLP shares would never come to open market. On the contrary they are day trading now.
7. Lock in period ending for Shankar sharma & FIIs. Any discussion w.r.t. the same?
8. How long stock will underperform even though business is flourishing?

Every1 would highly appreciate your response.

[Brightspot]

Things like increasing promoter holdings, ESOP buying, buy back no promoter will agree in personal meeting , its of no use to discuss such things..you would get those announcement via exchanges only

[Brightspot]

Tomorrow we could see big bloodbath in the market due to silicon valley bank saga, brightcom group could touch 17 -18 level, as warned earlier once it touch single digit and retailers accumulate in big number it will be very difficult for even getting 2 digit also..even 10% upside retailers book profit, LT investors can only see it without any help !!, now also I’m telling you meet hyderabad in large numbers and try to convince SKR

[Logan]

If the company had a good image in the market and if the management had maintained good corporate governance and walked the talk then the market would’ve taken this type of news as a positive sign because BCG is a debt free company with good amount of cash on hand.

Due to crisis like this you get many companies or their assets for cheap and companies with good balance sheet can buy those companies or take their market share. Plans to acquire Mediamint and Consumable Inc were done during the peak of bull market and from that time valuations of most of the tech companies have fallen a lot. Though I’m no way supporting the management but looking at the valuations now, it seems like not buying MM makes a lot of sense as it’s a backend company. For backend you can hire few engineers (either freshers or experienced – now most will be available due to layoffs), train them for few months and get them to your speed. I’m not sure about the valuation of assets of Consumable Inc as it’s a private company but sometimes asset light model works during tough times.

BCG bought few companies during the global financial crisis and they are generating the bulk of the revenue. OMS was bought in 2008 for just $13M (less than 80-100 crores back then) when it was making $20M revenue (less than 150 crores) and now it’s making over 2000 crores revenue and profit of 400+ crores. BCG should find a company like that and acquire it.

Market is not liking BCG not because the company didn’t acquire any company but because BCG announced plans and then decided not to buy. If BCG didn’t announce then the market wouldn’t have been so sceptical on BCG.

Thankfully they released the audited statements of key subsidiaries (though not completely) and this should somewhat remove uncertainty around the financials of the subsidiaries. If all the issues are sorted out one by one (at the earliest) then the market will cheer the company. Everything depends on the management and their pace.

By the way, I want to thank all the investors for their efforts in making the management people to share the audited reports of the subsidiaries. Without the pressure from investors they wouldn’t have released those reports now.

[akkithegrt]

Only buyback can prevent further freefall of the company. Guys, we all need to build more pressure on the management. The #buybackshares trend should start on Twitter.

[Brightspot]

When someone chanting 18 level few month back we ignored him, now its reality..if you dont put pressure on management nothing going to happen

[vgsatwork]

Please find the attached system driven disclosure about promoter acquiring 5,50,000 shares from open market on 1st March 2023. While it seems like a good news, there is an eerie similarity of this with the LLP acquisition notification that came on 4th April last year where SKR acquired 4 LLP’s and classified them under promotor category. In both cases, the news was about acquiring new shares, but the hidden update was that the # of shares held PRIOR to the acquisition. I had raised an alert about reduced promotor shares number (prior to acquisition)and was viewed as scare mongerer. But later in April, when the latest SHP came, promoter had re-stated their promotor shareholding and that remains shrouded mystery till date. This SAST system driven disclosure also has the same characteristics. The # of shares held PRIOR to the said acquisition is stated as ZERO, whereas as per the Dec 2022 SHP, Sarita Commo Sales has had 10,41,66,666 shares. So, if the # of shares prior to this acquisition is ZERO, then what happened to the 10,41,66,666 shares that was held by Sarita Commo Sales LLP as of Dec 31st 2022. There was a trading window closure for Promotors and insiders from 1st Jan 2023 till 48 hours after the publication of Q3 result on 04th Feb 2023. I had searched in exchange notifications and could not find any update w.r.t any selling by insiders. So, what happened to these 10.41 crore shares?

Attachments:

1. 

   IMG-20230313-WA0001.jpeg
   

[sac6310]

All those who feel that 7K members telegram group which is very much restrictive and only talk positively rather than facts and one sided communication, do join below telegram group. this group is very mature and open for all discussion on BCG

https://t.me/brightcomgroupinvestors

[BCGLTI]

Let’s be a little careful while drawing such serious conclusions. I checked with the company. There are NO purchase/sale transactions. They are shifting trading/demat accounts from one broker to another one. And hence moving those shares within their own accounts(old to new broker).

The SDD(System Driven Disclosure) mechanism is not fully mature yet and has issues in reporting accurately.

Reply To: General Discussion

[odysee]

@BCGLTI, thank you for the clarification. It should set minds at ease now.

[odysee]

Thank you very much @BCGLTI. This clarification will settle a number of uneasy minds.

[vgsatwork]

Thanks @BCGLTI for checking this with the company.

I am not drawing a conclusion that Promotors have sold 10.41 crore shares. Infact, I have left it as a open ended question. But, similar thing that happened in Apr 2022 when we got the notification about the 4 LLP’s acquired by SKR. Everyone was of the view that promotors have increased their stake, whereas it turned out completely different when the SHP came couple of weeks after that. Hence I have mentioned the same saying that it is eerily similar to the same. Promotors are maintaining that they have not sold any shares, but the published SHP showed drastic reduction in promotor holding and we are still trying to figure out how it happened and when did the share transfers happened.

If promotors are shifting their Demat accounts, it would have been prudent for them to disclose in a notification and do the same. As the saying goes, when in doubt, disclose is the mantra as far as corporate governance is concerned. Atleast now that an individual investor has reached out to them, the right thing for them to do would be to clarify through a notification. Let’s hope that we see a clarification on the same from the management.

If such things are not clarified, then what should we base our view on? – System driven disclosure or offline clarification?. Proper thing would be to clarify through notification to exchanges so that we can take that as the official clarification from the management as far as the issue is concerned.

[anand84sharma]

https://www.nseindia.com/companies-listing/corporate-filings-pit-annual

Brightcom Group Limited KALPANA COMMOSALES LLP Promoter Equity 31,02,051 – – 5,16,79,619 02-Mar-2023 02-Mar-2023

[vgsatwork]

@anand84sharma

Based on this filing, Kalpana commosales LLP acquired 31,02,051 and post acquisition, the total # of shares held by Kalpana Commosales is 5,16,79,619 shares. As of Dec 2022 SHP, Kalpana Commosales LLP had 5,20,83,333. Based on this report as of 2nd March, AFTER acquiring 31,02,051 shares, their total # of shares is LESSER THAN WHAT THEY HELD as of Dec 31st 2022 by 4,03,714 share, Whereas it should have been more than what they held as of Dec 2022.

Again, No clarification on this one as well and in absence of any clarification, what do we base our views on??

[odysee]

`@vgsatwork, I would suspect that this too falls in the same category as the situation vis-a-vis Sarita Commosales.
But maybe one could request BCGLTI to check and re-confirm if really necessary.

[tanv151]

One of the investors got this confirmation from SKR.

Attachments:

1. 

   IMG_F935AE9E4EC7-1.jpeg
   

[odysee]

I have just noted a post on the Telegram BCG investors group, that confirms the visit of a shareholder ( Mr Hitesh Agarwal) to the BCG corporate office in Hyderabad, and a meeting with the CFO Mr Raju. He has reviewed the audited financial statements of the 4 major subsidiaries and has confirmed that the figures are in agreement with the summarised financial data provided by the company in its Annual Report for financial year 21-22.
This is very reassuring indeed.

[akkithegrt]

Great! Thank you, Mr. Hitesh. As we know that ad tech companies like Trade Desk and BCG have high trade receivables, can anyone confirm the realizable profit of BCG?
Does BCG receive at least 80 percent of the money from receivables?
Does anyone know how to cross-verify this?

[Author]

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