- This topic has 89 replies, 10 voices, and was last updated 2 years, 4 months ago by VALUEBUYER001.
February 10, 2020 at 2:12 pm #4613Raj
Admin, please check business line on business restructuring by brightcom.0February 10, 2020 at 2:12 pm #4614kpal
Twelve subsidiaries of the digital media and marketing group will be brought under one US entity
Brightcom, formerly known as Ybrant Digital, has decided to restructure by pooling almost all of its foreign subsidiaries and bringing them under one firm.
Of the 16 subsidies it has in the group, 12 will be brought under a newly-formed US entity. The board of directors will consider a proposal to appoint an auditor to advise on the restructring. The new foreign entity will be wholly owned by the Indian listed company.
Brightcom, which deals with solutions for digital media, digital marketing, artificial intelligence and machine learning, hopes that the new structure would help improve streamlining of fund flows.
The firm says funds to the tune of Rs 700 crore are struck in receivables.
Fund flow issues
“In most cases, the receivables take 90-120 days to fructify. But the firm is under obligation to pay the publishers in under 30 days. This creating a lot of problems,” Suresh Reddy, Chairman and Managing Director, Brightcom Group, told BusinessLine.
The restructuring, he argued, would open up opportunities to tap a line of credit, easing the issue of payouts.
“We are struck with the issue (fund flows) for over seven years and it has become a big pain. We have decided to find a solution. We thought the regrouping the foreign subsidiaries under a US entity is the best way out,” said Reddy.
The group, which registered a topline of about Rs 2,500 crore in 2018-19 and a net profit of Rs 400 crore, is looking at similar turnover numbers this fiscal as well.
The firm has about 350 employees, including 150 in India.
Reddy also said the firm will explore opportunities in audio and video advertisement solutions, as mobile bandwidth penetrates further deep and consumption of digital content increases.
Ybrant Digital, founded in 2000, bought a number of companies, including LGS Global, and became a listed company through this acquisition.0February 10, 2020 at 2:21 pm #4619adminKeymaster
Thank you kpal for posting this news first. Thanks Raj for pointing the real source.0February 10, 2020 at 2:32 pm #4620kpal
Adminji, You are welcome. Stock hits lower circuit, Moral of the story, No amount of events, News flow will change the tide, It will languish in the range of 2.30-7.47, The tide will change once the outcome of Q4 audited results come in as expected y May 2020. Not to forget company is confident that once again 400 crs profit as last fiscal will e repeated for the upcoming 20-21 yr end. Kudos & Cheers.0February 10, 2020 at 3:11 pm #4622
1. I note that you have been consistent in stating this figure of 2.3 to 7.47..Where do you get this figures from? Who has carved the figures.These figures that has been given, is this some kind of outlook,one has to expect, for matters to settle.
2. You state with confidence about May 2020. Where did you get those figures? Are you probagating your ideas or are you seeding and priming the figures into retailers mind.
3. How confident can one be, that it’ll take only 6 weeks for the global figures to be audited?
4. For the purpose of LOC, the figures of 2018-19, was supposed to be audited.what happened to those audited figures?0February 10, 2020 at 3:36 pm #4623kpal
May end means almost 120 days & not six weeks. 52 week low is 2.30 & high is 7.47. The difference is I elieve in the #, Therefore invested & Of firm conviction, Promoter has given guidance of repeat 400 crs profit for 20-21 fiscal & I do not have an iota of dout & there is a huge mismatch in price & Earnings & That will catch up sooner or latter once the ig 4 audit gets pulished. Cheers !!!0February 10, 2020 at 3:37 pm #4624Logicalspeak
This predicting price to be in the range of 2.35 to 7.00 is nothing but seeding fear in the mind of small inveSTORs,which nothing but modus operandi of operaters0February 10, 2020 at 4:16 pm #4627kpal
There should e a trigger for a flare up. Is there anywhere any trigger as of now, No, Not all, Therefore the price will e range ound. What does the price action & Volumes tell, Pls let me know. Once the audit report comes out that will act as a trigger which will flare up the price eyond diselief. Therefore I am consistent. Cheers !!!0February 10, 2020 at 4:37 pm #4630February 10, 2020 at 4:40 pm #4631
@kpal… When the trigger of – on and off button is in the hand of real market, it’s different.. But, if the trigger, is in hands of someone who firmly controls it, is something different… But, having said that, so long as, things are progressing in the right direction and for good, no worries…keep posting and guiding..0February 10, 2020 at 5:56 pm #4635kpal
My conviction as far as this scrip is concerned is very strong, As far as operators play is concerned, Kindly note its in t2t & There is hardly any volumes to play as there is no interest of day traders, Speculators,Only some small trades are carried out to keep the action live.The real smart operators play will come in more or less the timing will coincide with the declaration of Q4 audited results or a sudden take over y some ig entity, Prior to it is all in our mind, Figment of high imagination. Here who are shouting hoarse are investors who have unfortunately entered at higher prices. Nothing can e done aout it, The est way to tackle it is to stay put. Cheers !!!0February 10, 2020 at 6:02 pm #4638rajeshmk71
I really feel things are finally moving in the right direction.
skr has admitted that hes facing cash flow issues since last 7 years and he is trying to resolve them as early as possible.0February 10, 2020 at 6:19 pm #4642kpal
Go through the entire transcript to understand the pain of the company’s Promoter, I am 100% Convinced that its indeed a turn around story in the pipeline & Will recover past glories, Pls wait for it. Cheers.0February 10, 2020 at 6:27 pm #4644XO09Blocked User
Just as an FYI, go through the below link. This firm provides legal advisory, consulting, Corporate restructuring and serves as an Investment Banker in NY. All one stop shop. My closest search and of some relevance. Just read it once see how things work. i will add some more details later today.
All the best.
XO.0February 10, 2020 at 6:31 pm #4645XO09Blocked User
Some error in the previous link: Here it is
XO0February 10, 2020 at 8:08 pm #4651
The formation of a USA based conglomerate paves the pathway for future listing in Nasdaq or anyother major listing places.The Indian laws are allowing us and have paved way for abroad listing in addition.A global auditing firm,numbers and figures will be very helpful in achieving the same process.Predecessors such as TTD bring listed will give us added advantage as a global peer for comparison.In addition, having additional capabilities on the sunrise sectors such as AI and ML, being conglomerated into the USA entity, will certainly add more colour to the Pe, which will get directly reflected proportionately, On the Indian entity which will be owning it FULL AND COMPLETE0February 10, 2020 at 8:13 pm #4652Lycos_InvestorRegistered Boarder
My only worry now is whether we need to wait for years for things to take shape. Consolidation of subsidiaries and global auditing i dont think will complete by May. I assume earlier too they had done some consolidation into some cayman islands not sure how it was done.0February 10, 2020 at 8:24 pm #4655Lycos_InvestorRegistered Boarder
Not sure why the CEO didn’t tell his business strategy of consolidating to the investors in the last Con call.0February 10, 2020 at 8:27 pm #4656
@LI… It was an ongoing process. During the last con call following Q2, the CEO said, the process was already on and was expecting all to be done within a quarter.If some one has the notes of last con call can post it here for validation.Its my view point ,that, the ongoing process, is brought into limelight,and intimation to the exchanges is a process, especially, considering, a change of auditor is happening, on a global basis.Having said that, it’s the listing equivalent and price comparison etc are for later days or years. Currently, with the right impulse and momentum, with appropriate push, the Indian equivalent necessary valuation needs to be achieved, as we can’t be trading at such values, when a listing abroad is possible considered in the pipeline0February 10, 2020 at 10:09 pm #4654kpal
Platinum, I fully endorse your view, At last the analyst in you has perceived the way it should e. Appreciate it. Keep posting & Guiding novices like me. Tomorrow’s meeting, I hope apart from the name, It will e great if a timeline is also given. Cheers !!!0
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