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One more from SPDR…

SPDR Portfolio Emerging Markets ETF is holding 443596 shares

https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-portfolio-emerging-markets-etf-spem

Attachments:

1. holdings-daily-us-en-spem.xlsx

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One more ETF … Avantis Emerging Markets Equity ETF

https://www.avantisinvestors.com/content/avantis/en/investments/total-holdings.html?fund=118

Not sure of the exact no. of shares…Just a rough math basis the market value of $157582 … Assuming they have purchased it at 137 rupees with a $ conversion rate of 75 the total holding comes to around 85k shares

Attachments:

1. 

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2. 

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One more American ETF holding BCG.

SPDR® S&P® Emerging Asia Pacific ETF is having 2 lakh shares of BCG

For more details visit https://www.ssga.com/us/en/individual/etfs/funds/spdr-sp-emerging-asia-pacific-etf-gmf

Attachments:

1. holdings-daily-us-en-gmf.xlsx

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@chris – Right, Wisdom Tree seems to be holding / tracking it since long time…but we are not sure how much they were holding before and if they had increased it recently or not

Anyway, some take aways from this list

– The fact that there is some foreign fund which is holding it for such a long time even during the toughest period of BCG is good to see

– BCG is in 66th place out of 472 stocks

– Affle is also there in the list at 467th place with holding of 755 shares…not to downgrade Affle, but I was expecting a higher percentage given its history of bull run since long… probably some other fund might be holding it higher

On your second question, it depends on the type of ETF…some fund managers change their holdings on daily basis and some change it on monthly or quarterly basis.

The BlackRock iShare fund seem to be doing it on monthly basis…at the end of the month they might increase or decrease too basis their internal criteria

If there are any other ETFs based on MSCI Smallcap Index, they will also be adding it in their portfolio. Since MSCI Indexes are popular across there might be many Indian Mutual funds / fund managers who would be tracking this list even though their fund is not based on this index … Probably we will get to see the impact of it in next month MFs holding update

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Apart from BlackRock’s MSCI ETF funds BCG is also part of one more American ETF named Wisdom Tree India Earnings Fund.

It is holding 15 lakh plus shares with a weightage of 0.26%

For more details check … https://www.wisdomtree.com/etfs/equity/epi

Attachments:

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@odysee – Regarding your question

Does BCG currently have the resources in manpower and otherwise to sustain very high growth rates, quarter on quarter, without an additional back-end resource being acquired expeditiously

We can infer this from the following statements from SKR
1/ Growth projections are without considering any acquisitions

2/ We are on target as per the projected numbers

3/ Company is very strong on the SSP (Sell Side Platform) & the company’s core strength globally is on the demand side where it works with Ad agencies & direct advertisers the company tries to grow both together as it aspires to be a full solutions company.

4/ Regarding Indian acquisition the due diligence is complete (both legal & financial) the acquired company is doing extremely well, now all the legal papers, share purchase agreement (SPA) will be done as its a 2 stage process first is signing & then closing the deal in about 2 months in order to ensure a smooth transition.

My thoughts basis statements 1 and 2

– The current quarter will be the biggest one in the history of BCG and it’s going to be the most hectic one. In case of any need of additional bandwidth they would have already added resources to handle it considering that they are well aware of these numbers upfront and the corresponding workload during this period.

– The acquisition even if it had happened by now, it would have still taken time for the financial closure and movement of resources. Plus, it would take some time for the team to settle down and work in coordination with BCG’s team. So in all probability, they wouldn’t have considered these resources for their current business

– The higher numbers they are generating now is because of the increased no. of ads. I don’t think this would require any additional bandwidth as these are programmatic ads which are set up once for each campaign.

Having said this, this again leads to the question. What kind of business which BCG is looking to expand and why they need this additional workforce?

BCG’s DM related work as well as the team behind it seems to be small. If we look at DM related activities like SEO, SEM, Email marketing etc; (checkout https://www.uplers.com/ as a reference for a typical DM related work), all these activities are coming from Brands (Demand side business) and not from Publishers side (Supply side business). Out of these the Programmatic ads section is the one where the DM agencies would work with companies like BCG to target their ads.

SKR seems to be looking to expand this portion of the business. This is a bit low margin business and would require lot of people and an established process + tools to scale this and that’s where he would have seen synergy with the target DM company.

Basis the above statements 3 and 4 from SKR, I feel there is no change in strategy and this seems to be progressing as per the plan.

Hoping it is just a operational delay and hoping the negotiations go smooth and they quickly sort out things and we get to hear good news as soon as possible.

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My views on dividend policy posted in BCG TG channel…the example of ITC or any company saturated in terms of technology and to certain extent consumption too is in similar line of cement company as mentioned by SKR…sharing it over here if someone is still not in that group

In my view it is fine when a company’s business is kind of saturated and the company has no means to utilise their profits and expand their business. They can distribute dividends and keep investors hooked on to their company shares.

For example, can ITC generate more business by setting up another Cigarette or an Atta factory…the number of people consuming their products are going to remain same and it is not going to go up just because they have set up a new factory … In this case what will ITC do with their profits … They give dividends to investors so that investors are happy holding the shares even though there is not much growth in the business

Please note ITC is just a hypothetical example here, I have never tracked this stock and don’t know the growth drivers for this business

BCG is in Adtech industry with operations across the world. As you can see this industry is huge and is growing at a rapid pace with increased digitisation across the world. There is lot of business out there up for grabs and and every rupee is important for BCG to invest it back in the business which is ultimately going to generate 10x or 20x returns for the investors
——–

Let’s do a rough math on dividend with some assumptions and rounded numbers for simplicity sake

Let’s say BCG is going to make 1000cr Annual profits and let’s assume it is going to distribute 20% of the profits which is 200cr … With around 100cr shares this will come to 2 rupees per share … At CMP of 94 this is around 2% of your investment

Instead investing back the same 200cr in the growth they will be able to generate more business.

Let’s assume they are going to invest back this 200cr in the current business itself …with around 120 days of receivables cycle, in an year they will be rotate this amount 4 times generating 800cr of business in total.

With net profit margin of 18%, they will be able to get 144cr profit…this is 1.44 EPS and with a conservative PE of 20 this would translate to 29rs addition to per share price

Decide now whether we want 2rs dividend or a 29rs growth in share price

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Thanks SKR garu for covering most of our questions.

Thanks @Jay69 for sharing the updates.

Sorry @admin, @odysee for delayed response. It generally takes time for me to collect these thoughts. Anyway, I am sharing these thoughts below

– Overall the Organic growth is intact and there are no headwinds or risks coming from MCM partnership, Privacy policy changes or the general attrition in the tech industry.

– With high focus on ROE and FCF, SKR seems to be targeting FIIs / DIIs analyst community. I guess SS factor seems to be working behind the scenes, who else will know better than SS on what markets wants.

– Some tough talk on the dividend. Totally agree that the cash is best utilized for the growth of the company and thus increasing share value. Investors who understand the math will be happy that eventually they are getting multiple times return per share compared to partly dividend. Happy that our thoughts are matching, he took a similar metaphor of what I had shared in TG channel. Will post this separately

– The FCF generated is going to help sustain growth next year too without any external funds. This is unlike previous years where the company had to let go off some opportunities and was desperately in want of cash

– Growth is going to be fuelled further with inorganic portion. Excited about the higher margins of Audio ad space.

– Operational efficiencies, adding new agencies and reducing tax should add to the growth.

– Would be happy to hear the announcements related to the technology additions they are doing to the their product stack

– One caller has asked for a detailed breakdown of the numbers and SKR has agreed to share this from next to next quarter onwards. This is also my request and I would request SKR if possible to please share it as a seperate investor presentation for the current quarter itself. I feel this is very important information from the FII/DII investment point of view especially given that BCG is included in MSCI Smallcap Index and there are high chances of these investors wanting to enter BCG. To my understanding, before they take a Buy call the Analysts of these organisations would need to prepare a detailed report by slicing and dicing these numbers and this detailed breakdown would be helpful for them.

– Some time is spent on questions related to promoter’s stake, pledge percentage, con call recordings etc;. This might look like basic questions for some old investors in stock market or old BCG investors, anyway it is good that people have heard it from SKR himself and would feel confident and build conviction.

Coming on to some of the important questions he has addressed and my view points about these answers

Guidance Figures
Numbers intact. As we have seen in the current quarter they were able to match both topline and bottom line. This indicates that the company is into long term contracts and there is a high percentage of certainity in their CPM model unlike the performance driven business models like CPCA where there is lot of uncertainty both on no.of ads to run to acquire a customer and no. of customers they will be acquiring eventually and given that the overall campaign budgets are fixed and bit the other way round.

Also the new filtering technology seems to giving more clarity on their final real traffic excluding bot generated spurious traffic and thus more clarity and confidence on guidance numbers

AdAuth
Agree that this is not the right metric to look at (as @Logan keeps stressing on this point) though it gives some what high picture. The real metric is no. of ads which each of these publisher is showing.

Happy about around 100% growth in ad impressions to 60 to 70 billion compared to 30-40 billion range. Request SKR to continue publishing these metrics on quarterly basis.

One more point, I am not sure how much percentage of this 70 billion traffic passes through BCG’s products (Brightcom, Compass etc;). Handling this much of traffic is not a small feat and shows the strength of BCG’s product Architecture / tech stack. We all know an ad is served within few milliseconds when a web page is loaded. This only shows how strong their tech team is behind the scenes and how hard they are working. I am sure this info would give confidence to both the tech investors as well as to the analysts. Request SKR to please include this info in whatever way possible in future presentations.

Google MCM partnership
– Nice to know that these numbers are not yet come in. This also indicates that they are not heavily dependent on this partnership. Looks like they are migrating existing customers to this model and new business arriving from this partnership might not be that significant as popularly believed by most of us and and market participants. I felt this partnership though good at this stage might turn risky if tomorrow Google changes their business model or if new players become MCM partners. Happy to know that this doesn’t seem to be the case.

Leadership team
It is getting expanded with more people joining the foreign team.

As discussed before, with increasing size BCG would be in need of more hands to run the show effectively. Nice to see this happening with more people getting added in other geographies to along with PA and SC.

FCF
He has mentioned in many calls before that we will be able to generate FCF once we cross certain numbers. I was little bit concerned that this goal post is getting shifted and was sceptical that this might still not happen when we actually cross the threshold figure or thought this number might not be significant enough. With 250cr. Minimum CF each quarter all my concerns were put to rest permanently. The should help the company to focus on both organic and inorganic growth without worrying about the funds

Acquisition of DM company
– Good to know that DD is complete and it is moving forward.

SPA stage also means most likely there is a broad agreement on the final purchase price and it is the nuances of payment terms and conditions and other things, which needs to be finalized. Hoping that the SPA is finalized soon and agreed by both the parties.

Having gone through SPA process myself, I can tell you that this step is very important and sometimes takes time. SPA has two parts to it in terms of acceptance. The terms and conditions has to be agreed by the stakeholders (Founders, Promoters, Other Shareholders) in parallel to the Legal team. Generally the SPA doc goes into multiple versions as the discussions progress.

It is not clear at this stage whether it is in the hands of Stakeholders or Legal team though SKR kind of mentioned that it is in the hands of legal team. In case of later we can assume that the the deal is through and it is just a matter of time for the legal team to agree upon. In case of former, there are still chances of deal falling apart or getting further delayed.

SKR was not as excited as he was last time talking about the growth of this DM company, but this is totally understandable given the current stage of the deal. Also given the high emphasis on ROE, there could be chances that this factor might be playing on back of SKRs mind. Hoping the deal get through soon and excited to see these two companies and the team work together for a larger goal.

We also need to understand that the deal can happen only in the best interest of both the parties. If something has to be negotiated they better do it now and not after acquisition. Post acquisition nobody would be happy sitting across table discussing SPA clauses instead of business. As an investor we should support whichever way it goes through and doesn’t get emotionally attached to it.

Audio Ad tech acquisition
With SC focusing totally on this, expecting to hear an LoI news probably this quarter or max by next quarter. SKR is clear to get an early mover advantage, but with evolving technology and business landscape they would be extra careful in shortlisting a potential company. They don’t want to end up acquiring some company whose technology can’t be adopted to new challenges in the market. The tech due diligence will also be a critical factor in this. Both SC and PA will be looking at it closely so that they don’t put a wrong step in an hurry.

Lycos / Daum
The priority of this item depends on how much Lycos is going to generate now, it’s profit percentage vs how much they have to pay. The equation still seems to be tilted towards paying higher price for Lycos. I feel going slow is a better decision, but at some point they will definitely close it some way or the other and stay clean on legal matters.

Overall, BCG has just started its journey of explosive business growth, the growth is going to be continued in coming quarters and years with the drivers coming in the form of FCF, inorganic growth, technology additions and operational efficiencies.

Overall, if guidance was a big take away in last call, the assurance of reaching those high guidance targets and the assurance of a large FCF generation is a big take away in this call. The extra emphasis on ROE is a icing on the cake for the long term investors.

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Thanks @admin and @Logan

Hope SKR is going to cover most of these questions and most importantly hoping SKR is going to give some positive news on the acquisition front or other things like he did last time with the guidance numbers.

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First of all thanks SKR garu for giving the guidance numbers and achieving the targets as per the guidance numbers given that it was the first time and also especially when other companies were finding it difficult given the dynamic nature of the adtech industry.

Thanks for the all progress… in terms of additions to leadership team, FPIs and Mr. Shankar Sharma as Investors, time to time market updates, ESOP trust formation, Pledge reduction and the price growth we have seen in the last quarter.

Congratulations for being included in MSCI India Smallcap Index.

After looking at the numbers thought I have nothing to ask, but reminded myself that conviction is important for each and every investor and it can’t be just me or few other investors in this or other groups. We need conviction from majority. This is definitely improving since last few quarters with time to time dose of knowledge from knowledgeable people across this board and other boards. Conviction increases tremendously and stays for long when we hear something directly from the management in the Concalls and from company updates.

Given this context, here is the list of few questions from my side.

Please note, I haven’t touched upon Daum / Lycos, Receivables, CS appointment, Pledge shares, Dividend, AGM etc;

@admin – Please see whatever you feel are important ones to share to the management

On Financials and the market
– Any change in the guidance numbers for the next two quarters.

– For the current quarter since we are half way through, what is the run rate you are seeing and if there is any revision

– There is a mention of 250cr CF in Q1FY22. Could you provide revenue and PAT guidance for this quarter too

– Can we get a breakup of growth figures from Brightcom, Compass, Protector and BLocal business

– Are we planning to launch BLocal in any other countries

– What were the key drivers of revenue growth, can we attribute this to increased number of impressions or increased cost per impression or Google MCM partnership or something else

– We have seen a dip in AdAuth figures from around 52K publishers to around 47K, thought this has not impacted revenues. Any specific reason for this drop, can we see this increasing in future and most importantly how much we attribute this to BCG’s revenue

– It’s mentioned that we are clocking around 60 billion impressions per month. What’s the growth rate of this number compared to last year. If possible, could you please publish this number along with publishers, agencies count on quarterly basis

On partnerships
– How much percentage of revenue we are clocking from Google MCM partnership. Do we see more players becoming MCM partners in future and if there is any impact, how are we planning to mitigate this

– Like in the past are we targeting any country specific exclusive partnerships with players like FB, Microsoft or in Audio ad space like with Spotify or other players

On Acquisitions
– Any update on Indian DM company due diligence. What’s the outcome, are we going ahead if so, will it be possible to reveal the name of the company and tentative timeline.

– Any update on growth of this company in terms of employee count

– In general the IT Industry is facing challenges like Attrition (the Great Resignation), increased Salaries, Travel restrictions etc;. Are we seeing any similar challenges within BCG or with the target DM company

– Given that audio Adtech is evolving industry both in terms of technology and market, what kind of acquisition we are targeting at. Will this be a pure product company with smaller team or a service provider or a combination of both

What would be the size of Audio Adtech companies we are in discussion with both in terms of team size and revenues

What kind of valuations we are looking at. Given that BCG’s valuations are still low compared to other Adtech companies and given that there will definitely be a difference with the target DM or the Audio Adtech company. Any valuation higher than BCG’s current valuation might have a impact from the market. How do we plan to address this as the growth rates of the target company and the value addition which it brings on table for BCG can’t be quantified.

Are we looking at multiple acquisitions in Audio Adtech space

Will Satish Cheeti will be operating this division from India or he will be sitting in US close to customers.

Will the backend operations will be taken care by the existing team or the new DM company’s team or are we looking to form a new implementation team either in India or in other countries

Do we have any existing customers whom we can target for Audio ads or it’s a completely new set of customers

What will be the target revenues we can expect from this segment in this FY and for the next FY.

Assuming the target companies will be smaller in size operating in a single country, can we expect this due diligence process will be done quickly with internal team and any timelines for the first acquisition

What will be source of funding for this acquisition and will there be any equity dilution at the subsidiary level or will it be from the cash flows generated internally

LoC
– Will there be any change in plan on LoC process which was on hold temporarily. Does the positive CFs have any bearing on this decision

Nasdaq listing
– Last time you had mentioned that we need to get the right valuations in Indian market before we look at Nasdaq listing. Sorry for my poor memory and laziness, is this for LoC?. Anyway, as I understand from fellow knowledgeable investors that we match all the criteria for Nasdaq listing. Do you feel that this is the right time both in terms of timing and given the bucket list of to-dos on our side or we have to wait for it. Any updates on this front.

MSCI Smallcap Index Inclusion
– What will be the effect of this inclusion in terms of fund inflows. Do we expect any MFs entering.

ESOP
– Are there any shares accumulated as of date, is this planned for this or next FY

On future business
– Given that there are other forms of asset / content monitization models … like subscriptions, NFTs etc; do we have any plans to enter this space or go deep in Adtech space itself

– We are seeing from other listed Adtech company like Affle that there is also a good market scope for Cost Per Customer Acquisition model at least in India. Do we see similar scope in US or any other country and any plans to get into this space either with in-house technology or a new acquisition

– Given that we are strong on SSP side, does it make sense to also enter into DSP side too with in-house product and provide end to end capabilities to customers across

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While I was expecting voting results or some acquisition related updates it is interesting to see today’s updated presentation on business overview.

Is this just a routine exercise probably done as part of AGM document or are they trying to convey something

Some thoughts on the intention behind this presentation

– Bring in more clarity to the new investors

– Showcase the different segments of their business, their partnerships they have along with their native Compass platform

– Going forward, probably they will show case the results split across these segments …might be a standard way of segmenting results for Nasdaq listing and making it easy for investors to compare with other DM companies … Those who has seen Magnite’s results can confirm this

– Showcase what offerings and clients they have now vs. the new acquisition…thus making it clear to the investors what value the new company is bringing on table in terms of offerings, clients, locations etc;

– It’s a presentation made for some analysts

– A combination of all the above and something beyond our thoughts

Looks like SKR is trying to convey something…time will tell on the intention behind this presentation

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A point to note on BCG’s guidance plus Peshwa Acharya joining and the impact of these events for next year numbers.

The annual guidance numbers of 5K crores were given from Q2 onwards. Note that the Q1 numbers were without much growth, but this will act as a low base for next year’s numbers.

Considering BCG continues its similar performance for next year Q1, we can expect a growth of 90 to 100%. In absolute figures it will be around 1100 to 1200 crores.

This would translate to annual figures of 5500 to 5600crs for next year which translates to around 10 to 12% YoY growth.

A growth rate of 12% plus is considered strong for normal IT companies and here we will be witnessing this growth in BCG without considering any other operatinal growth aspect of the company including growth related to new acquisitions and the overall Adtech sector in general.

Some might see this is as a bit early statement considering we still need to see how much BCG will be meeting it’s earnings guidance of Q2. But we need to remind ourselves that these numbers were given after mid Q2 and SKR also mentioned that he has given it only after seeing the run rate till mid quarter. We can safely expect that there will not be any negative surprises atleast for Q2 for sure. Infact with Peshwa Acharya joining, hoping he might be able to strike some good strategic deals including any relationship with Jio and this translating to some guidance revision for this year or atleast maintaining some good run rate for next year.

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On LoC… I feel BCG might not be in need of LoC in near term or might go for a small amount or even totally stop it …Some of the recent developments gives me this feeling like the ones given below …

– They will be getting an additional 200crs from the fresh PA / PW allotment

– The recent earnings guidance, I guess is without considering any additional cash. I guess with the new Google’s MCM partnership model probably they may not need to purchase media upfront and doesn’t require any additional capital to scale up

– The increased revenue might also increase cash flow

– They might also get some cash generated by the new DM company

They might go for LoC only if they need additional capital for activities like building new products, upgrading existing products, scaling their adtech, DM business etc; wherein they need to pay upfront and the cashflows are not sufficient enough to support these activities

SKR will be looking at many other factors as things pan out and will be taking decision accordingly…I feel it is a wait and watch step and is not going to happen in a hurry

We as investors need to understand that this is no longer a mandatory step and keep waiting / talking about this event to happen just because the management has spoken about this plan long back

This is just my view point and I might be totally wrong on this.

Just wanted to bring this thought to everyone … We shouldn’t be surprised at later stage if there is a change in plan

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Changing name is a normal thing in the course of the business…it could be for legal reasons or for change in business line or for a better branding

There are many famous and large companies which changed their names including Google, Yahoo, PayPal, IBM.

https://inc42.com/resources/10-companies-which-successfully-rebranded-their-names/

Even Zomato, Freshworks originally had a different name…I still recall Freshworks as Freshdesk as it is their first and most popular product…:)

Probably he doesn’t know that the Twitter platform he is using to spread negative gyan to his followers is originally called Odeo with a different business line all together…:-)

What next people want to cry for … take some fresh ideas

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My views on the recent Preferential shares and Warrants allotment

– Company is able to bring in same set of investors to pay higher than before in just a matter of 2-3 months. This shows how much confidence these investors have on the future growth of this company. In fact some of these investors have opted for a higher quantity than before which again shows their increased confidence

– Apart from the existing FPIs company is able to bring in Mr. Shankar Sharma as investor, who is one of the top investors in India and is very popular in media and in investment circle. One of the wishlist item from our old long term investors community that some large fund houses or a big prominent investor to be part of BCG

The additional funds will help the company in different ways like…

– For additional cash in case of increased valuation of Indian DM company as it is also growing during this period or to use these funds for growing existing business or to settle Daum or could be even for a fresh acquisition.

– Any payment to the DM company in the form of shares will now happen at a minimum price of 37.5 or at a higher level as the share price will be moving up

Mr. Shankar Sharma’s entry would be helpful to BCG in multiple ways like…

– Increased media coverage as we are already seeing now. This would lead to increased awareness all across the investment community

– Probable investment by other large investors / fund houses etc; or atleast BCG will be under their radar waiting for Q2, Q3 results

– Probably decreased manipulation by operators

Finally, if we want to pick negatives for argument sake and to scare investors … we can say promoter’s stake
in terms of percentage will be decreasing and hide all other facts like

– The number of shares held by promotors hasn’t come down
– Whereas the value of the their holdings in terms of rupees is increasing
– We can also hide the fact that their pledge shares percentage is going to come down.

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https://www.dsij.in/DSIJArticleDetail/ArtMID/10163/ArticleID/20616/BSE-SmallCap-index-With-58557-per-cent-gains-in-2021-Rattan-Enterprises-becomes-the-top-small-cap-multibagger

Brightcom is in second place

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Happy to see Mr. Peshwa Acharya taking up active role in BCG. Thanks to SKR for bringing him on-board at this critical juncture when the company is poised for an hockey stick kind of growth.

Mr. Peshwa doesn’t need any introduction, he is a respected personality and his credentials and achievements are all available in public domain for anyone to see and understand.

As BCG grows big it is important to have more hands joining SKR / Vijay and strengthen their executive team. I was expecting this to come from the new acquisitions, but it is also important to fill certain gaps and also strengthen their existing team.

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In terms of new acquisitions and their corresponding activities this is my view.

Lycos – We are looking at it just as a financial transaction, but at ground level it is as good as a new acquisition. Before taking over Lycos from Daum, BCG team has to look at the current assets and financials of Lycos freshly like a new acquisition and ensure that everything is in proper shape for example, making sure that there are no pending cases, no mortgages, payments and receivables are all clear etc;

I guess with this acquisition there will not be any movement of people involved. So before acquisition or immediately post acquisition they also need to setup a new ops team to maintain Lycos assets. We all know how difficult these days to hire right talent and how long it would take.

Indian DM company – This we all know is already in progress and probably might have already reached advanced stages with report from EY team and at this stage there will be more work to BCG’s team to look into the findings and negotiate the final price and payment options considering the changes happened during this period in terms of employee’s growth and increased revenue, BCG’s share etc; and close the deal.

Note that post acquisition too there will be lot of migration and integration activities involving HR, Admin, Finance, IT teams. Once this initial movement is over and the new team is settled, there will be integration of sales and implementation teams.

Audio Ads Tech company – I guess the team as of now will be involved in talks with one or more audio ad tech companies evaluating their assets, financials and probably looking at initial deal size, possible payment options and negotiations of the same

We should note that unlike normal IT companies BCG is having a lean team with limited staff and I guess all the above items are adding to the load of their accounts and legal team apart from the management team.

Note also that since all these are one time activities generally companies don’t increase staff for these activities. Post acquisitions they will anyway have additional staff in each of these departments from the new organisation.

I believe things will start moving smoother post completion of these acquisitions and once the teams are integrated.

Most importantly what matters most for us as a investor is the growth of the company and there is no point for us to get worried when the company already is in growth path and all these new acquisitions and going to add further to the growth of the company.

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My view on the AGM date. Overall I feel this is a combination of strategic reasons as mentioned above by @jay69 and also increased workload to BCG team. Also as @Logan mentioned last year too it happened in December and there were no concerns raised at that time.

Coming back on the increased workload aspect, right now BCG’s team will be busy with multiple activities happening in parallel. Listing down some of the activities which each is us are aware of to certain extent or the other

– Acquisitions…They have three acquisitions in pipeline. Each of these are at different stages of pipeline. You read it right it is three and not two and in my view this is a huge task ahead for the team for both pre and post acquisitions. Will share in some detail about this in my next post

– ESOP related activities… Now that the the ESOP trust is formed they would need to work on next steps related to shortlisting employees, qty per employee, price and acquisition of the same and allotment process

– Increased workload due to increase in business (as per the projections shared by the company)

– FPI allotment related activities… like coordinating with authorities and the concerned parties involved

– AGM related activities… like Annual Report preparation and other background activities. The overall task might be same as before unless they are planning this as some grand online / offline event with increased shareholders and probably targetting Analysts

– Some activities which may or might not materialize in near future but might be going on behind the scenes which still need the teams involvement which will be a time consuming. For example activities like LoC, New Acquisitions apart from the current pipeline known to us, Nasdaq listing etc;

Hope we all understand now that there is really lot of items on their plate and appreciate the team for their effort

[hw_tw]

This is a good amount of pledge reduction without any change in promoter’s holding percentage.

Positive for the people who are looking at it in terms of promoter’s holding and pledge percentages instead of absolute no. of shares.

Note that last time when the shares were allotted to PW holders, promoter’s holding got reduced in percentage terms. Though there was no change in absolute no. of shares, but some people started looking at it as a negative thing

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