[vkhare789]

I would suggest that we should wait for company’s response. Definitely there is some problem in data and submissions but we should atleast give a chance to CEO and company to respond back. Lets not jump to conclusions right away.

[ramganesh1982]

I am hoping that sebi has taken this action in order to protect the retail investors from getting manipulated by some of the groups. SEBI should be aware of the fact hat 73% of the company stock is with the retail investors . We are also not aware of what percentage of the shares are held by SKR , Shankar sharma + binomi & the other 21 who are restricted from buying and selling at this point of time . I am hoping that they hold a bigger chunk than what is stated in the SHP. Hopefully they were planning to play big for the next cycle and caught by surprise . This is just my assumption and a wish /prayer for the benefit of people who have invested in this for more than 10 yrs like Logan and others. Should the stock reach some decent valuation by dec we should exit this non-sense . There are plenty of opportunities in market to make money we should be less attached to company as our ultimate aim is to make money in the market . We are not the CEO or founder of these companies . Hope the stock recovers to 60 range from today . This can definitely happen as many believe that SKR is the culprit for all the manipulations / fluctuations over the years and these investors will definitely come back if they get to know sebi is going to closely monitor the company . Also note that sebi hasn’t declared everything to be fake .They have mentioned out of 850cr only 350 odd cr transactions have happened which means we still have some skin in the business. If all the allegations are true then SKR deserves to be penalized with sizeable penalties, however the business should remain unaffected. Hoping for everyone’s good

[Logan]

Everything was good until they issued shares and warrants on preferential basis. Even in the forensic audit conducted by sebi there was no fake revenue and profits but the issue was the way how the impairment was reported. But this time it is serious as it shows serious fraud. I never expected the CEO to do this and I’m in real shock.

Giving clarification will not make this go away. It may soothe some nerves but there’s a big task ahead. The CEO should take moral responsibility and immediately step away from the company. The person who will be appointed next should clean the company and make sure that all the rules and regulations are followed 100%. Maybe sebi should appoint a person on board and that person should make sure that all the issues are fixed.

Everytime the CEO screws up things and shareholders have to suffer later. The warrant allottees made hundreds of crores at the expense of retail investors.

[whyShares]

Never expected Mr. Reddy to be a fraud. I can’t imagine Suresh being so dumb and stupid, thinking he could get away by submitting forged bank docs to SEBI. We should give him a chance to reply to these allegations.
If there is fraud, I hope it is only in the Share Capital accounts and not in the business income and expense accounts. If these accounts are somewhat clean (minimum 30% genuine), then we can expect BCG to rise again under new management.

[BBPopuri]

It’s not an excusable offence by SKR and he deserves maximum punishment. As per previous SCN by SEBI we got the confidence that the revenue and profit numbers are correct. As long as that confidence is not shattered we can have some hope to get back our investment.
SKR might have used all those people to whom he transferred money back after preferential allotment as his binamies. Or he could have acquired those shares off market at a predetermined price. Many times during conference calls he used to mention that the promoter share holding is much higher and will be revealed in due course of time.
In Shankar Sharma’s case he would have taken part of the money in a personal account or SS also could be part of the game. After SS entry I have increased my holdings a lot. Learned a lesson.
My initial share are from LGS reverse merger. Kept on adding at regular intervals. More in Ybrant digital and then in Lycos. Never thought of taking back my capital. In other words never sold a single share. When ever I have funds in had I used to buy Lycos/ BCG thinking that is the best investment opportunity available even above ₹200. Now feel like exiting party, but when will I get a chance and at what price?

[akkithegrt]

@Whyshares whatever you have told is true.SKR has done fraud we have to accept it,but i think if financials are real then definitely company will be taken over by big corporates.

I had doubt when SKR avoided all the questions in sunday’s conference and the way share price reacted,it was directly a negative sign some storm is going to come.

Now the only hopes are reported financials are true!!

[Rising Sun]

Looking at the current situation, only solution is a representative team taking over the office operations of Brightcom Group. Considering all the acts the management has done, SKR or Promoters are not even to be considered as shareholder. They issued shares to themselves and own companies for free and diluted.

Peshwa, Cheeti, all other management team, and may be the board members too are hand in glove. Peshwa was also alloted shares in preferential allotment, but now he doesnt hold any shares.

People are talking about various things, but this is what needs to be done. Some shareholders with high holding combined, should take over the operations. Any funds lying in company accounts should not be under their control.

This is a serious issue.

[whyShares]

The total volume of trade in BCG today, NSE: 4598411 and BSE: 5469045 making a total of 1,00,67,456 shares (over a crore). This much volume is very surprising. Especially since it takes place on such a negative news day for BCG and in a share with compulsory delivery and shorting not allowed. This can only mean that there are people who think BCG will pull through this crisis. I also believe so.

Another thing, all the 51.21 crore shares allotted under preferential issue, in all probability, will be cancelled. This means the share capital of the company will come down by about 25%. This will be a bonanza for us retail investors.

My feeling is that there are people or entities targeting BCG for a hostile takeover by cornering as many shares as possible from the market. I do not expect the price of BCG to go down much further. Fingers crossed.

This is just my opinion, not a recommendation.

[vkhare789]

Thanks for highlighting this. 1 crore of volume definitely gives some hope that there is still some big player who might be interested in buying. They are capitalizing on fear present among retail investors. Still all is not over for BCG.

[akkithegrt]

Yes,off course the volume of 1 cr is not of retailer.I think definitely hostile takeover is going on.We know that 75% financials are audited ,so that is enough to give hope BCG will be back once management is changed.

lets hope it stabilizes between 16-19!!

[AdUp]

Having been invested in BCG/Lycos since the last 7 odd years, I have seen lot of ups and downs. This one is on a whole new level though. Markets have taught me not to fall for knee-jerk reactions and rather to digest information before acting. But this news will take some time to digest. SKR has now crossed the limit limit w.r.t. shareholders and markets trust and this is beyond repair. The day SKR announces he is stepping down, there will be many UCs from then on. This is shame for him and a slap on his face from the retailers.

Overall, I believe that this was in the best interest of us retailers. I appreciate SEBI for such thorough actions/investigations even when they have to deal with so many other ongoing issues in our markets. This will give some confidence for retailers but more importantly, will keep promoters in check (even though there will always be bad actors). It all boils down to the earnings of BCG’s subsidiaries and the fact that it was audited by one of the BIG 4. If there is a time for test of conviction, this is it. The next 3 to 4 months (remember hearing 4 months anywhere recently?) will be crucial for the company and investors. I will stay invested and will let the storm pass.

[vkhare789]

Attachment shows bulk deals from moneycontrol. 80 lakh shares bought as bulk deals.
Something is cooking which retail investors are not aware about. I am not going to sell my shares until further announcement/development.

Attachments:

1. 

   BCG-bulk-deals.jpg
   

[ramganesh1982]

Regarding the shares consumed today I have posted a msg in money control with my user id J83P0PkZ8p . Do check

Regards
Ram

[Logan]

We should not be in denial and we should face reality. This is a very serious issue. I can see that it is similar to Securekloud. There too the subsidiaries were good but the culprits were the CEO and promoters. But the proportion here is larger.

This is an embarrassment for shareholders, employees etc. The CEO and management should be honest and come out clean and face consequences for their cheap actions. The new CEO when appointed should clean the books and make sure that shareholders don’t suffer much. I don’t know how much time it’ll take but it’s better to get it done at the earliest. If this is done there’ll be short term pain.

[vkhare789]

Hi Logan/members,

Is there a way we can reach out to management and ask them to conduct a investors call for clarification of this matter?

[Saach]

Dear Logan, you are absolutely right and I appreciate. My concern is small retailers; what and how they will be protected? SEBI is only putting bans on disposing off shares by the people involved in this preferential share game. Furthermore, SEBI is punishing them by removing from their positions but how to control such scams in future so as to avoid trapping retailers in this market! Warm regards.

[nitin_asce]

https://timesofindia.indiatimes.com/city/hyderabad/ed-search-on-firm-auditor-yields-rs-3cr/articleshow/103000701.cms

Ed search on bcg and its auditor

[akkithegrt]

I think only thing that can save BCG is financials or else BCG is on the path to become history with our money as history as well!!

[buffet]

@everyone: As SEBI has barred SKR from taking key managerial positions in any org, does this mean he has to resign as CEO of BCG? Or can he still remain CEO ?

I wish someone would take over BCG. Since ED has raided BCG offices/residences, Suresh Reddy & team might end up in jail. SEBI should appoint a director to the board & new clean face as CEO. That is the only way forward it seems.

Forging bank statements? OMG. Very sic & childish …and that too from IIT grad. Not sure on which la la land SKR is living in this digitized world.

May god give us strength to sail through this difficult time.

[smitsat]

Board meeting on 27th sunday. BSE update

[Author]

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