[Guru1991]

Dear Brightspot,
It is relevant to note that the Company Secretary had resigned and relieved on 28 Oct 2021. It is now going to be nearly 8 months and still they have not appointed a successor. This would affect their Corporate Governance. We have already seen how the second bonus issue was messed up by the company. Similarly the CFO had retired from the company on superannuation – they could have atleast requested him to continue till the resolution of FA matter.

[Guru1991]

Dear Brightspot,
Please find enclosed a detailed working of Promoter and PromoterGroup SHP of BCG from Dec2021 to Mar2022. The following are the salient points :-
1. The Promoter (Mr SKR, Vijay Kancharla and their Group companies) have sold shares during the period from 26Jan2022 to 31Mar2022 (Approx 19 Cr shares)
2. However they have brought in four LLPs as Promoter Group Companies to the extent of 18.12 Cr shares approx.
3. There was no new purchase by the Promoter or the four LLPs that were brought in during the above period.
4.The four LLPs were ALLOTTED Shares under the Non_Promoter category on 28July2021 @ Rs 7.70/Share (FV Rs 2 + SP Rs 5.70).
5.These four companies are reflecting the SHP – 30/July/2021 under PUBLIC Category to the extent of 14.50 Cr shares.
6.The First Bonus issue in August 2021 (1:4 Bonus) – Record Date for the Bonus issue was 20/Aug/2021.
7.Consequent to the Bonus issue, the Shareholding of these four companies
increased from 14.50 Cr shares to 18.12 Cr shares in BCG under PUBLIC Category. This is reflected in SHP – 24/Aug/2021.
8. Original cost of Acquisition of 14.50 Cr shares @7.70/Share = Rs 111.65Crores
9. Post Bonus issue in Aug2021, the effective cost of acquisition drops down from Rs 7.70/share to Rs 6.16/share ( Original cost of acquisition of Rs111.65 Crores DIVIDED by 18.125 Crore shares)
10. These 18.125 Crore shares have been transferred from PUBLIC CATEGORY to
PROMOTER CATEGORY IN MARCH 2022 by the PROMOTERS.
INFERENCE
THE PROMOTERS HAVE SOLD APPROX. 19 CRORE SHARES BETWEEN JAN2022 TO MAR2022 WITHOUT DISCLOSING THE INFORMATION TO THE STOCK EXCHANGES.
I FEEL THAT THERE IS LACK OF TRANSPARENCY THOUGH THE BUSINESS MODEL AND THE FINANCIAL METRICS ARE BRIGHT IN BRIGHTCOM.
Request the learned members like Logan, ConservativeIndian to provide their feedback and the way forward for Retail Longterm Investors.I am attaching the workings done by me. ( I am an ardent follower of CI sir in his TG Forum but I do not have rights to post messages there. Hence I am trying to reach him through this. If any of you have posting access in his TG Forum, please forward this message and the enclosed workings)

Attachments:

1. PROMOTERSHP_BCG_DEC21toMAR2022.xlsx

[Guru1991]

Dear CI Sir,
Extremely glad to receive the Detailed Post regarding BCG. Highly informative and analytical. Hats off to your thinking process and enlightening learners like us. Glad to note your recovery from eye surgery. We wish you Good Health and Peace. With warm regards,

[Guru1991]

Dear DrJaysee,Excellent compilation of events of BCG.I was a recent entrant to this August Forum. Learnt a lot regarding BCG. The writeup has given a strong conviction for the investments made in BCG. Thanks is a small word for expressing gratitude. With warm regards,

[Author]

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