[m4max1979]

On the Bse site, promoters shares pledged is showing as Nil. Is that an anomaly or have the promoters unpledged their shares.

[m4max1979]

My understanding from this letter is that the company merely removed the earlier shares pledged by the promoters from the promoters list in SHP even though the promoters hold the voting rights of those shares as per agreement.

In that case, why are they still showing 1.05 crs shares which are pledged as part of promoter group in March 2022 SHP. Assuming that they have some other agreement for these pledged shares, am I correct in assuming that the promoters actually hold around 17% pledged shares from before and around 18.47% shares as shown in March 2022 thus totaling promoter stake of around 35.47%?

If I remember correctly, the company had mentioned about promoter stake increasing to around 35% when sent notice about promoter becoming major partner in some of the LLP companies.

[m4max1979]

Thanks a lot Sobha.

[m4max1979]

Hi Guys,

Could someone share the letter received from promoter/ company with regard to the shareholding pattern.

Thanks.

[m4max1979]

Dear Hyderabad Team,

I am sure you must have already covered most of the questions for the meeting. I also have a question for SKR.

I refer to an article in economic times regarding Brightcom being removed from Kotak Nifty Alpha 50 ETF on June 30. Could you ask for his opinion on the matter. Why was a reputed fund leaving in such a short time.

I ask this because the last presentation they uploaded, they shared names of nearly 100 institutions and funds invested in the company.

[m4max1979]

Hi Guys,

Should we be worried about the forensic audit as it has been a long time since the notice was published and as per clarification provided by the company, they have been providing information regarding forensic audit to Delloite much before publishing of notice towards end of Feb this year.

[m4max1979]

Thanks a lot mate.

[m4max1979]

Could someone please summarize all the points discussed at the conference call. I missed it this time. Specially the details about acquisition of Mediamint.

[m4max1979]

I sent the details directly and asked them to look into it.

[m4max1979]

I just received my dividend. I sent a mail to ir@brightcomgroup.com with my DP ID and client ID on Sunday.

[m4max1979]

I am yet to receive my dividend. Is it just me or there are others too in this forum who have not received dividend?

[m4max1979]

Wishing a warm Good Morning to all fellow boarders.

I am sure by now a lot of you would have received dividend and I am sure all of us see and wish that the company touching new highs in terms of both earnings and market cap.

I have a query with regard to the allotment of PW passed in the AGM. Since the company brought out the PW so suddenly, does it mean that LOC is in jeopardy. I mean for any lender, a sudden dilution of equity to raise funds when apparently they are on the verge of providing funds would be a big negative. Pls do correct me if I am wrong.

I certainly do not believe that the management would want the PW owners to convert it to equity but if the share price goes up then they would not be able to stop them either.

[m4max1979]

My account is also with icicidirect and I have not yet received dividend. Is it possible that shareholders having shares in CDSL depository are being paid dividends first, post which shareholders having shares in NSDL depository would be paid dividend? Or has there been an exception?

[m4max1979]

@drjaysee the ID’s on MC were also saying that warrants have been approved by one exchange and pending approval from another. Now the same ID’s are saying that warrants issue has been rejected due to missing PAN nos. Then how the hell was it approved in on exchange in the first place.

My point is that they have a full time job to misguide ppl like us and basically use MC forum as a regular chat site meant for abusing the company. Otherwise why would somebody spend their entire time for years on this board. for e.g. Retailers like us never go to a forum where we do not have investments but these ID’s are present everywhere.

On another note, I think that now it is just a matter of time before all issues are sorted one by one. We have waited patiently for so long and that too at cmp ranging between 2.4 to 4.00, another couple of months should not make a difference. If you notice, these same voices in those days were screaming that BCG would be trading in pennies in few months.

One advise from prior experience, like stated earlier by another boarder on this forum, there is no point in sharing info or making arguments on MC forum. They will either mock you full time or delete your messages. After all as I said earlier, it is their full time job.

[m4max1979]

Can somebody confirm the following to me pls:

1. Is it a rule that if promoter holding is more than 33% then in order to acquire a substantial amount of shares they need to first give an offer of buyback first?

2. By the looks of it the current warrants being issued are not compulsarily convertible but are optionally convertible. Can the warrant holders sell their warrants to a third party within the next 18 months?

If the answer to the above questions is yes then here is my theory, since buyback would be more expensive for the promoter group, they have come up with warrants which would be first bought by these entities and would be later bought by a promoter held entity most probably an overseas entity and through this mechanism the promoters would have a significant stake in the company without ever openly showing it. The only reason I could think of for doing this is that they realize that it would be impossible to hold the share price down once axis and daum is closed. So through this mechanism they get shares at cheap prices and weaker hands would sooner or later move away from this counter. So I think that cmp would not move a lot in the next couple of months till they sort out the warrants issue and manage to enter into an agreement with the warrant holders for selling the warrants to them.

[m4max1979]

Really appreciate the efforts of our forum members who are planning a visit to the company. I suggest that we keep the discussion really focused on what affects us. The reason we are concerned now is because warrants allotment dilutes and adversely affects our investment. So I suggest our representatives keep the discussion focused on a few issues as follows:

1. Warrants – why were they issued now, how were the parties selected, what does BCG hope to achieve by doing this, why is the promoter not worried about his own equity dilution and value erosion for all shareholders

2. LOC – Need a clear picture whether its happening or not

Other issues (Axis and Daum) I feel are dependent on company closing the LOC first but we still need a clear timeline on closure and that closure would be achieved.

My personal opinion is that promoter is using a different and lousy route to ultimately increase his stake in the company through these warrants which might come back to bite him 18 months down the line. I am sure he would be aware of that and hence i do not think share price would appreciate a lot in next 18 months even if all issues are closed.

[m4max1979]

@jmathew, I think there are a few errors in the SHP calculation

1. NRI holding shared by company includes the shares held by 2 NRI’s you mentioned
2. domestic and overseas Body Corporates includes the parties you mentioned
In my opinion the calculation should be as below:

706, NRI -> 6.78%
235, Bodies and corporate ->2.70 %
PRAVEEN KHURANA -> 1.1%
RAJESH GOENKA -> 2.6%
PRIYA PRAKASH -> 3.63%
GEETHA PATHEJA -> 1.01%
N ANIL KUMAR -> 1.53%
PRABHAKAR REDDY NARAPAREDDY -> 1.1%
AKG FINVESTPRIVATE LTD -> 4.99%
Uno Metals Ltd -> 4.99%
Overseas corporate bodies -> 0.00%
MUSKAAN LIMITED -> 4.69%
Clearing Members -> 0.48%
Trusts -> 0.14%
Employees -> 0.04%

Promoters + top 15 investors hold 36.76 + 35.78 = 72.54 %

Alternatively, in the SHP it mentions that 406 individual investors hold 11.5 crs shares out of which 4 individuals hold 3.18 crs ahres and the remaining 402 individuals hold 8.32 crs shares (16.41%) and like you mentioned 49,058 individuals hold 5.48 crs shares (10.79%) which adds up to 13.80 crs (27.2%) shares amongst 49,464 individual investors.

Interpretation based on this data is upto the individual investor.

[m4max1979]

@Odysee a lot of companies take loan in parent company and lend it onwards to their foreign subsidiaries. It is not complicated but is a common practice because in case of most companies, its their foreign subsidiaries which need support from parent. In case of BCG almost all the income is generated abroad. A lender would not like to fund an entity which has losses in its books and is technically a defaulter to Banks even though the consolidated balance sheet looks good. That is the reason i was surprised when promoter said that consolidation is on hold for LOC. It is very much possible that a Bank could lend to the US subsidiary i.e. Frontier Data which has a decent balance sheet with an understanding that other subsidiaries would be consolidated within specified timelines. Hope they do get LOC quickly so that me and all my friends get some peace of mind and some sanity back. This cmp movement between 5 and 6 really takes a toll on the patience and perseverance of investors.

[m4max1979]

I do not think that LOC will happen anytime soon because when it comes to loans provided by MNC Banks abroad, sanctioning of loan takes a lot of time and even after loan is finally sanctioned, paperwork is huge which takes time. So I hope that Axis bank gets settled as early as possible.

Another issue is that what if BCG does not get LOC? I know many people including me might not like to even think about that but it is what it is and it has happened before. Does BCG management have a plan B?

Now that promoter has clearly said that LOC is their priority and Daum settlement and consolidation would happen only after LOC, I am afraid that just like previous times management might put everything on hold waiting for LOC and continue dragging pending issues.

[m4max1979]

I think if the promoter was sincere to us in concall and to our representatives who met him last week about being very close to getting LOC facility then I feel that share price reversal would start and all legacy issues would be sorted one by one.

While I can complain about company not keeping its promise, I can also understand how difficult it is when cashflows are tight and that too in the middle of peak business season.

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