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Thanks for your thoughts Mr Goodman. Let us hope that Mr Reddy issues a meaningful clarification and update in the next day or two, ahead of the conference call. This is essential as he had intimated all shareholders through the stock exchange on Friday 26th June about these impairments, and had clearly stated that a clarification would follow. The management should remain proactive and not slip-up on this matter.

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Mr Goodman, in your view is it a matter of serious concern that such a vast sum is being written off or current assets being written down by 869 crore? In all these years, no indication has ever been given of such a possibility. Or is it possible that the proposed consolidation of the subsidiaries is necessitating this adjustment as 100% shareholding was acquired in each subsidiary individually. Not clear on the accounting aspect of this. But the word ‘impairment’ across all subsidiaries is baffling. I’m sure Mr Reddy would have noted the very troubling comments on this forum and is taking urgent and immediate steps to clarify the situation. All loyal long term investors and stakeholders deserve a quick response to set their minds at ease.

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@dgm , I think it indicates that Oak is still holding over two crore shares. The last lot they sold (open market sale) was 44 lac shares on 24th June.
Not very pleased about this status, as we were under the impression that an orderly exit would be arranged for Oak and that their shares would not come in for ‘open market’ selling and disturb the sentiment and value.

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The conference call is on Wednesday 1st July at 4pm IST.

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No purpose is served in proposing a dividend of 5 paise per share or a token 2.5%. It would have been appropriate to have not announced a consideration of dividend on the 25th of June, as none was expected.
The company could have announced and paid an interim dividend later when cash flow permitted.

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Agree there m4max1979. How can the company announce a dividend without clearing the Axis Bank loan? Surely, that should be the first order of priority if funds permit. Further the policy as enunciated by the company is to pay dividends only from free cash flows. In any event, the dividend can be paid only after obtaining the shareholders’ approval at the AGM. This is unlikely to be an interim dividend (if any) although I may be proven wrong.

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Thank you for your post, Saul. Appreciate your response to this niggle of concern being experienced by me, which had more to do with the actions of Oak ( at odds with what was indicated in January of an orderly and managed exit) rather than the price action.I have re-read the post submitted by Ian Biden, and the observations and commentary appear logical and well reasoned. Best wishes.

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Saul Goodman has provided us with tremendous data and analysis as well as a very rational and detailed perspective on the business of BCG and its management. Brilliantly put together and presented under various subject streams. It would be extremely helpful and reassuring to all of us on this forum if he could give us his thoughts and perspective on this sudden recent change in market sentiment, with no buyers at all, and substantial re-tracing of market price. My belief ( and possibly shared by many) was that a significant positive re-rating of BCG had happened or was in the making, post all the excellent presentations and the Research Analyst’s report.

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Raj, technically it did not close on lower circuit on NSE, but at the end there was no buyer on NSE and only sellers of a few lac shares. Technically, because the closing price indicated is an average of the last 30 minutes trading at various prices.

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Jmatthew, the eps for Affle would be RS 5.07 per share of fv Rs 2 in the event of a split. Makes BCG look even more attractive. Best wishes.

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Comments at #6258. It is only logical that after releasing the presentation containing the figures for 5 years including the last financial year ending 31.3.2019 in US dollars, BCG would release the nine month data for the period ended 31.12.2019 in this professional format to enable potential international investors or financiers to get an up-to-date picture of the group’s business and financials. I think this is an excellent move by Mr Reddy and the management. The company’s share is grossly undervalued and it doesn’t need to be artificially ‘pumped’ up as possibly being suggested.

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With reference to @jmathew, Oak may have to mandatorily exit the BCG investment prior to their ‘closing shop’ if the investment was in a time bound close ended fund. It doesn’t really matter then if the realisation price is below entry cost or not. You may recall the last conference call with Mr Reddy wherein an indication was given that a buyer had been located for the Oak holding even though the price was not suggested. Let us hope that this gets done in an orderly manner in the near future. In relation to the other pending matters, let us endeavour to keep the faith in terms of the timeline vaguely hinted at by Mr Reddy in that same conference call.

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This inordinate delay in obtaining the preferential allotment permission from the NSE certainly necessitates an investor update from Mr Reddy. The BSE consent was received months ago, and if the NSE is not granting approval, then those objections must be highlighted by the company. The shareholders should not be left in the dark on this significant issue, as it leads to unwanted speculation on the intentions of the management pertaining to multiple pending promises and timelines for achieving clearly laid down objectives. The lockdown may have slowed things down a bit, but investor updates are urgently in order.

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Deepak, can you attribute any reason for this sudden spurt of negativity by new id’s whenever there is a positive upward movement of the stock price? Why should the price not move up to its fair value ( even if that is the consolidated book value)? Is that such an impossible task? Would appreciate any other views on this subject. Was there any such hindrance in the past occasions when the price had recovered from single to double digits?

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