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Brightcom ranked 420 in ET 500 list compared to 447 last year.

https://m.economictimes.com/marketstats/pid-61,pageno-2,sortby-CurrentYearRank,sortorder-asc,marketcap-,year-2020.cms

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SKR has mentioned about investors lined up for Oak exit. I guess the speed with which this event happened gives me a feeling that these investors were actually lined up at that time but was not materialized for whatever reason. Anyway it doesn’t matter when these investors were lined up. What matters now is Why they were brought in. Is this

1/ For working capital of India or other country business
2/ To close Axis and Daum
3/ To handle Operators
4/ To bring in stable long term investors
5/ To expand business with new investors
6/ For change of ownership going in future or additional hands along with SKR, Vijay
7/ A mix of all or some of these

In my view it is for 3 and 4, though he might never disclose about 3

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Is this a possible option…

BCG to share the same repayment proposal (which they had already discussed with Axis) directly to NCLT and get Axis to accept the same.

Why can’t they settle it in NCLT itself instead of behind the scenes negotiations and waiting for Axis to accept it

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@Logan – Regarding the other names, yes you are right. Venkata Subba Rao, Venkateswara Rao were MDs of LGS Global. I guess Bollepalli Venu is also part of LGS.

Interestingly LGS Global website http://lancoglobal.com/ is still up.

Note it doesn’t mention upfront that Ybrant has acquired LGS. We need to check the news and investors section for these details.

Don’t know the reason for keeping this up for such a long period. Is this an regulatory requirement or is BCG still doing some business under this LGS brand.

Another question is who is actually paying back this loan LGS team or BCG.

If it is BCG, why LGS team hasn’t objected for sale of their properties or why their assets are still mortgaged even after the acquisition.

If it is LGS team, why hasn’t BCG objected the same before NCLT and allowed Axis to hold their PO money.

Can it be both. Is this possible. If so, what will be split. How much percentage each party has agreed to pay.

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@admin, for some reason my message is not getting posted. I am not getting any error message as such. Not sure what the exact reason for this. So, I am trying it again by removing the hyperlink

Thanks @Logan for connecting these dots

I could find another old notice dated 06th Feb 2019 from Axis Bank

Some interesting points to note from this

– This notice was also sent to the Directors of BCG …Raghunath Allamsetty, Jayalakshmi Kumari etc… But I guess this is not mentioned anyware in Directors Report

– Between these two notices the interest kept getting accumulated. This is still looking like a normal loan and not a OTS. I guess in case of OTS there will be a fixed amount to be settled within due period and there wont be any continuous interest

– In both these noticed Axis Bank seems to be clear on amount due as principal + interest and hasn’t mentioned anywhere about OTS of 26cr

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Axis bank had sent an asset sale notice to BCG last year Dec 6th…Please check out the details Link

Some clarifications from this document. Sorry for my limited knowledge. I am not able to connect the dots well. Just wanted to see if someone has better understanding on this matter

– It looks like the loan is taken in the name of multiple parties and BCG is not the only party. In this case does BCG has to pay the full amount? If not how much percentage does each party contribute.

– Who are these other parties. Apart from Suresh Reddy and Vijay Kancharla there is no other known face. Are they from LGS

– Two properties were put on sale. Has this event happened. If so how much money Axis has recovered from this sale. Is the 16cr part payment includes this recovered amount or something else

– Are there any other assets mortgaged for this loan. Like promoters ple dged shares. If so, how many. And why has Axis not sold these assets.

– A general question and not related to this document. Can’t BCG tranfer this loan to other bank and have a better payment terms instead of fighting it out with Axis. Is this option possible and feasible at this stage.

– Again a general question specifically for the Retail Investor representatives. Could you check with SKR, What he meant when he said Logistics Issue.

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BCG has just launched a new website for Blocal…Check out Blocal.news

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There is an interesting discussion on MC board on what would drive the price

I would see broadly there are these 3 factors playing in investors mind
1/ Growth in business and revenue
2/ Increase credibility by closing Axis, Daum issues and bringing in BDO
3/ Corporate Governance with clear and timely updates and prompt responses to retail investors emails

While all the three Goals are important for the CEO, I would feel goal 1 carries high weightage compared to goal 2 and 3.

Goal 1 would keep SKR and his team’s morale high. Note that it is very difficult to keep employees motivated for long without increase in business. Also it would become difficult for a company to attract talent when the company is not growing. Same would be the case with customers too. They would want to partner with companies which are growing rather than with companies with stagnant gowth and not a buzzing company.

From the investors point of view too growth is a important factor. Even other factors like collection period kind of things gets sidelined as long as company is growing. The PE in a way gets adjusted when investors start seeing growth. I don’t think there is any investor who would say that they don’t care about growth.

May be not a right metaphor. To me its like Ambassador versus Maruti where the customers, employees and investors are all interested towards Maruti because of its growth factors

While Goal 1 is very important and carries a high weightage there are times where the CEO has to temporarily change strategy and give high weightage to other goals too. Especially to Goal 2 as it is also hampering your Goal 1.

I feel the credibility of BCG has taken such a beating that even if it shows 50% growth on y-o-y basis too it will not be believed by the investors especially the larger ones.

SKR is doing good by arranging Analyst meets and also working towards closing these issues one by one. I feel what matters is the speed with which he moves towards closing these issues. This would bring back the lost credibility both to him as a CEO and to his company.

It would be interesting to know from fellow investors if they are in shoes of SKR which goal they would give high importance and why

@admin – not sure if this qualifies for a separate thread. If so, please move it

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After a slight dip in market share from 3.3 to 3.2%, AdAuth is now showing an increased Market share of 3.4% with 35.8k unique publishers.

If I remember correctly, SKR has mentioned in the concall about increased addition of publishers while there is decrease in rates.

For some reason SKR hasn’t spoken / tweeted about AdAuth figures anywhere while he mentioned about Adzerk report. Request @admin, @mayur to bring it to SKR’s notice. It would be good if he talks about this so that investors take these numbers seriously

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@admin – Not sure which tech stack you are working on. If possible please do share your resume. I am assuming you will have my mail id. Let me see if there is some fitment in our organization.

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What could be possible scenarios

– Axis rejected the payment plan offer. BCG is unprepared for this and so has asked for more time

– Axis is not satisfied with the payment plan and asked for changes which BCG’s legal team is working on. This could be either in terms of amount or timelines or payment guarantee

– Axis has not yet responded back to BCG

In all the cases, it’s on BCG to buy more time from the court.

I doubt if they will be able to give any update to BSE until they get a clear yes from Axis.

Anyway we will get an answer in the next concall and hoping that this matter gets settled even before that.

Note that the PO funds are locked till this matter is settled and so BCG will be trying it’s best to resolve this soon. I feel the delay would be possibly from Axis Bank side.

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Any idea why MC message board is not showing any of the BSE / NSE Announcements. I see this normally in all other message boards except BCG. Is there any criteria for this or are these messages also getting deleted.

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@tanv151 – I guess this is a different company altogether named OneTag Limited and not linked to BCG.

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Index Exchange integration is a good move before the AdTech Analyst meet.

I am sure Analysts will be very bullish on Company’s progress in terms of new publishers, it’s rankings , new business from Brightcom Local, new tieups like IndexExchange.

Adding to this any positive news on its legacy issues like Axis and Daum will benefit the company

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Another day of high growth for Brightcom. As per AdAuth records 1500+ publishers added in a day and the market share has grown up by 0.1% to 3.2%.

One more thought of this rapid growth. Brightcom might have tied up with hosting providers with default ads.txt. Similar to default apps we get when we buy a mobile phone.

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@sateanna – AdAuth is different from Adzerk. They publish no.of sites / publishers and the overall percentage of sites using brightcom platform.

This information is available in public. They update it on daily basis. We can check it under AdAuth.com and search for Brightcom

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Huge jump in AdAuth figures. BCG share has increased from 2.6 to 3.1%.

I read in MC board that it could be because of increased adoption of ads.txt. If so, it should have increased for all other companies.

Organic growth at this rate is impractical. I feel either a acquisition or merging / rename of its subsidiaries or increased coverage by adauth to newer geographies would have led to such a huge jump in short span.

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BCG’s MC board is like a haunted house. The ghosts over there ensure that no one enters the board. The picture painted over there is that it is not safe to stay invested and not safe to newly invest in it. You are allowed to stay in the board only if you join them and keep shouting at SKR.

There are few people who also join these and satisy themselves by shouting at SKR. We think these people are all long term investors who have lost heavily in BCG. The recent rally would have given them ample opportunity to exit with profits, but looks like they have not done that and still cursing themselves and cursing SKR.

It has gone to such a lowest level that, someone is wishing death of SKR and the ghosts supporting this guy.

I would request @Logan to continue your fight against these with your facts. Let the individuals take informed decision and decide their course of action.

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Ads.txt direct sellers Brightcom is at 36th position with 1% and Criteo is at 31 with -4% change

Ads.txt resellers list Brightcom is at 63 position with -4% change and Criteo is at 34 position with -1% change. InMobi is at 79th position with 84% change

In Header bidding Brightcom is at 54th position with 0% change and Criteo is at 6th position with -4% change

Note that this report is for US and UK sites and not worldwide.

If you are looking for this report search for “adzerk pdf reports q2 2020”

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Publishers are increasing day by day…It has reached to 2.6% market share.

As @Saul mentioned before some of these might be already existing publishers and AdAuth might be crawling it only now.

While I am happy that business is growing, wondering how they are able to add even 5% of these publishers. What kind of transactions are these. Are they buying media space from these publishers or are they supplying their ad platform to them or both.

In case of previous, I feel purchasing ad space from so many publishers in such a short span of time is not possible especially when they have huge cash cruch.

If this is about supplying their ad platform / SSP to these publishers, there is not much cost involved for Brightcom side and I feel Brightcom is getting in good shape of a true adtech company.

In case of SSP sales, I believe an update from the company giving the number of publishers using their SSP and growth in last few months would give them a big rerating

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