[nitin_asce]

@logan couple of queries which are coming to my mind.
1) why SKR choose this path. There are international subsidiaries and if CEO takes salary from multiple subsidiaries and then subscribed to PW themselves isn’t it correct way of increasing the Shareholding.
He could have increased his salary that’s it. So very intrigued why this path was chosen. Is there something we don’t know.
2) he might have resigned but he may still call the shots within the company and may get a puppet CEO. The risk is really high.
3) during all this turmoil if he is not able to get his shareholding or his PW are cancelled, he may guide company to lower numbers thus share price will automatically come down and then he will increase his holding.

Still I am unable to get this puzzle that what he is trying to achieve. Can you throw some light on above queries based on your understanding.

[nitin_asce]

I think SKR is ready for this. He indicated ghis in q4fy23 concall that company is ready with the plan and as far as I recollect it was also mentioned alternate leadership is also planned.
I think he already had an inkling that SeBi will bar him.

The Issue is promoter despite being barred still may have significant influence over comapany’s business.

The key issue still remains the shareholding and once it is sorted whether promoter accumulates it to his desired level or any other company buys it only then share price will grow.

[nitin_asce]

https://timesofindia.indiatimes.com/city/hyderabad/ed-search-on-firm-auditor-yields-rs-3cr/articleshow/103000701.cms

Ed search on bcg and its auditor

[nitin_asce]

I think daum is done and dusted. Money is paid.
The Issue is shareholding of promoters. When they reach the desired shareholding level, all balance issues shall be automatically sorted.

[nitin_asce]

Can anybody confirm if bcg tds and dividend details are showing in form 26AS/AIS respectively.

[nitin_asce]

FYI, I checked with IR and they advised tds shall be visible in AIS by next week.

[nitin_asce]

I think they will be let go after petty fine maybe few crores of rupees.
I think intent will be very important in this case since shares were sold by lenders at rock bottom prices there is no intent to defraud the investors by making money. So the case be becomes wrongful reporting instead of making money of small investors.

All these things were done to gain their sold shares and promoters are successful in that. Hopefully we will see a new dawn in bcg now as shareholding was single biggest issue remaining rest all are reporting matters which can be easily resolved over a period of time.

[nitin_asce]

So what we understand promoter has miniscule holdings in the company. All lies were to protect any hostile takeover.

Business is doing very good. Does it mean promoters have intended shareholding now in the company?

[nitin_asce]

@Logan I do understand importance of disclosures but somehow I feel management will become more transparent only when they want it to be.

I got a sense that they have a plan and they will execute the plan. Nobody knows in that plan when company really wants company marketcap to appreciate. When they really want appreciation automatically more transparency will come.

My hunch is it will happen once shareholding issue is resolved or promoter consolidates/increases their shareholdings.

[nitin_asce]

Can somebody post the link for recording of concall.
Could not attend it due to personal exigencies.

[nitin_asce]

Fantastic results by BCG. More than my expectations.

Just saw another positive development, the concall transcript of June result concall is uploaded on bcg website after long time.

Waiting for daum closure, fa closure and audio acquisition. Stock can fly anytime.

[nitin_asce]

Very good results as per management guidance.
Looking back 3 years, there were multiple issues and most of them have been sorted. Only few are pending and we have to wait to see get them sorted.

Few observations-
1. Adding new ceo for indian operations. This might be starting point before mediamint acquisition is complete.
2. Company adding new director in board of directors for financial control strengthening. From my standpoint very important step.
3. Audio acquisition.

The company sees huge revenue increases with free cash flow and it looks from action of company that transition to become large cap has started. There might be hits & misses in this journey but we have to face that. Next 2 years are very important in this journey.

Management intent seems clear now and it is growth what they want. In the past ghee could not fully tell the truth because of compulsions and kept changing narrative but now it seems that there is no such requirement. Eagerly waiting for concall. Will expect some analyst in thus quarter concall.

Very excited to see the results and hope BCG does much better than the estimates in next 3 quarter.

[nitin_asce]

I think yhe best part was in the end. Even if promoters sold the shares(promoters claim there is no selling) they bought LLPs to increase the shareholding.
Generally promoter selling is a negative point since it shows promoters does not intend to run company over long term and the growth may suffer. However sometimes there are other reasons as well.

So if the LLP come into promoter fold then why to worry. However things are not clear and may get cleared in 1-2 quarter time.

[nitin_asce]

@logan my understanding is for pledging purposes it was moved to some brokers pool account. As per legal advise since they are not in promoters demat account it cannot be claimed as shareholding.
So once all loans are repaid, the shares will return to promoter account.

Somehow got a feeling this issue was unnecessarily created to bring share price down. It just my own feeling. Otherwise they could have issued same clarification 3 months back.

[nitin_asce]

By reading the reply on share holding, I think if that is the case they could have disclosed same 3 months back.
Don’t know why they did not issue the notification.

[nitin_asce]

Thank you so much @rathi_b for summarizing the meeting.

My understanding of the situation:
1. SKR agreed to meet hyd investors when stock was hammered. I understand at one point hyd investors wanted to meet SKR but there was no response from bcg.
It will be interesting to know who initiated this meeting this time whether it was bcg or hyd group.
Please note the intent of this meeting is to reassure investors. So do not expect any big thing from this meeting. But meeting Hyderabad investors in itself a positive event.

2. Rest when running a company there are several challenges which ceo will not share with investors as same might benefit the competitors.

3. For shareholding issue, bcg has not formally notified hhe shareholding for the quarter. The probability of skr cheating investors is very less. However skr repeatedly claimed that he is invested in company. There is a chance that promoters will increase their shareholding.
If I am the promoter of the company where revenues of the company are growing >50%, I personally would not sell my shareholding.

Rest this meeting with hyd investors shows a positive intent by management. As investors we have yo wait for couple of months to see the progress.

[nitin_asce]

@rathi_b is your meeting finished. Please post updates.

[nitin_asce]

@logan @rathi_b I once saw a nanocap company website and was impressed to see audited subsidiary reports on their website. I consider this as gold standard for a company.

If BCG can do it it will be awesome. No doubt initially there will be lot of queries but if bcg can appoint one person to respond to queries the issue will be put to bed.

[nitin_asce]

@hw_tw I agree with your response.
Even biggies like reliance jio, airtel etc will be coming in adtech industry in next few years. Sign IPL digital rights sold for record levels.

My take is SKR will never tell us the real truth. So we need to make an opinion on circumstantial evidence.
– SKR acquiring LLC to shore up his take can be taken as +ve sign. I always wondered he is so sharp and why he gave so much equity at low value. Some jugglers has been done to shore up stake.
– CS resigning. My take is Manohar resigned since he had to file notifications for such transactions. Now promoter can easily blame CS was not there and hence missed. Other thing is if Manohar took other job, how he is still helping brightcom. So he is still working for bcg at some other post but not as CS.
– good thing business is growing. Once it reaches 1-1.5 billion usd. The companh will be too big to fail.

Given all these circumstances and summarizing +ves growth in revenue, increase in dividend, growth from mediamint/audio, promoter acquiring LLp etc.
Tech companies in us have also fallen 70-80% normally.

So I think we should not worry about noise and wait till market recovers.
Personally i am cautiously optimistic on bcg.

[nitin_asce]

I think for the guidance figures, most important question is does it include mediamint numbers or not.
Definitely audio company numbers are not included.

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