[odysee]

I presume the warrant issue is more about increasing promoter stake or possibly bringing in some ‘desirable’ investors rather than raising large funds for the business or obligations of BCG.
It is unlikely to be at an option to buy price of lower than Rs 10, but very likely be much higher since usually the time frame is 12 to 18 months from the date of issue. Only a small percentage would be paid by the allottee initially ( say 25%) and the balance only on the option to convert date.
Yes, this would lead to an increase in equity but maybe only increase the promoter holding if allotment to them.
If the conversion price is high, then it’s a positive for the BCG market price and should instil confidence in the public and potential institutional investors.
In any event, this will have to approved at the AGM on 28th December before any issue takes place.
But my assessment may be incorrect as we will only get to know of the actual contours of the scheme post the Board Meeting on the 4th.
Unlikely that this is related to the LOC saga.

[odysee]

@JRS, good point. The question remains, how will we ever hope to make a positive return on our investment? The management couldn’t care less about the share value and the plight of the investor. That in itself is very disturbing and unnatural. You generate 400 crore of profit year after year, and yet the whole company is valued at less than 250 crore. And in a new age business where you have good expertise, and a high entry barrier.
When the Sensex and Nifty were at their nadir a few months ago, the stock was at 13. Now that the indices are at a new high, the stock has lost almost 65% of its value since then, despite the company earning over 4 rupees per share in the first half of the year.
Someone needs to be seriously perturbed by this state of affairs. Apart from us.
Many months ago, I had posted a message thanking Logan for having come on to this forum and providing us with excellent and detailed statements and comments and analysis on BCG, as well as providing a superb historical yearly chain of events as they occurred.
I truly believed and stated then, that this stock would never have been available in single digits if Logan had come on this forum early in 2019.
But I stand proven wrong and and now realise that logic and rationale have a very limited role to play in the market’s perception of a company and its management.
By virtue of having already invested in BCG, I was naturally biased and believed every word uttered by Mr Reddy in his convincing and inimitable style laced with charm and confidence.
The more hard nosed market participants obviously had a different take on the state of affairs, and the operators and manipulative cartels have had the last laugh.
What now, my fellow forum members? A fresh dose of optimism ( doses running out rapidly) or battle on the way we have, getting our noses bloodied almost daily.
Will we ever get SKR to provide support and succour to us?

[odysee]

Losing count of the number of times one has waited for the next conference call or the next update or the next AGM to get answers and reassurances. And post that particular event, the cycle starts all over again. Every time. Each time. We are, indeed, a very patient and trusting lot.

[odysee]

@drjaysee, I would refer you to the reply by m4max1979 in #9370 dated 23.11.2020 under the broad head ‘ Shareholding Pattern and comments there under.
The percentages as broken down are a little different to what you may be suggesting. Kindly have a look.

[odysee]

@drjaysee, it may be challenging to consider a buy back at a ‘good’ price, considering the preferential allotment was done recently at Rs 10 per share.
Difficult to issue shares at Rs10 in May 2020 and offer to buy back at 2 or 3 times that price a few months later ( even though the preferential shares are locked in for some time and cannot be sold or traded and may not be considered for the offer if that were to materialise).
About 13.80 crore shares with the public in retail excluding promoters and loyal large investors. One would need a very substantial sum of money to even buy a few crore shares from the non- promoters.

[odysee]

The updated SHP is available with the management and the company on a weekly basis.
They would know precisely who is holding what and how the movement is taking place. Some entities and individuals would be passive holders, and some may be active in terms of trading or circular trading as being mentioned on this forum.
It would be quite a stretch of the imagination to believe that the management is not aware of the individuals or entities involved in this drama being played out.
No promoter or management would sit idly by and watch a continuing destruction of their share price or maintenance in a narrow range at an appallingly low rate unless they were content to do so.
We can keep speculating on ‘strong hands’ or ‘stable long term investors’ coming in etc etc. Who will sell to them in meaningful quantities? The operators? The retailers at these current prices?
Company buy back of shares would involve significant outflow of funds. And for what quantum of stock? Are those funds on hand with the company? And at what opportunity cost?
Equity dilution of about 7% was done by way of preferential issue but it raised only 33 crore as it was at Rs 10 per share. A placement or a fresh issue even at book value would have raised that much money with a very small dilution. But then the traded market price would have had to be higher and closer to 60 plus levels.
Why would the promoters and management not be desperate to see a much higher and more realistic market price of their stock? We all long term investors would support them strongly in any endeavour on this front.

[odysee]

Mostly in agreement with your comments @Valuebuyer001 and I look forward to better times for the company and us.
But would give the benefit of doubt to SKR when responding to silly rambling grouses on the concall especially when there are probably a few hundred or more investors waiting eagerly to hear something meaningful and relevant.
The time for the conference call is too short and if two callers don’t ask pointed questions and instead take up precious time by moaning and quoting untruths from the Moneycontrol forum then it is frustrating and annoying to all.
If they had bothered to stay abreast with all the information put out by the company in presentations to the Stock Exchanges and discussions on the Brightcom investors’ forum, they could have been more focused.
Some of us never even got the opportunity to pose a query or two, thanks to those two gentlemen, even though a lot of items were more or less covered to a degree of satisfaction by Mr Reddy’s opening statement and the questions raised by the other callers.

[odysee]

@bhalothia9, no it doesn’t really matter if the fv is 1 or 2 or 10.
It’s only a question of perspective from a psychological viewpoint of a potential new investor as I have carefully articulated.
But you are entitled to your viewpoint.

[odysee]

Kind attention Admin. When the company presents its quarterly or annual results, they also provide the earnings per share. For instance, the communication dated 13th November 2020 to the Stock Exchange giving details of the September quarter results, contained under ‘Highlights’ the earnings per share at Rs 2.03 for the quarter.
Would it not be more informative to modify that to ‘earnings per share of face value Rs 2, at Rs 2.03 for the quarter’.
Some potential investors may not be aware that the face value of the BCG share is not Rs 10 but Rs 2 only.
A different perspective about the earnings.
If you and other members believe there is some merit in this viewpoint, would you be kind enough to suggest this to the company?

[odysee]

Admin, the date was wrong earlier. Rectified subsequently, post the message.

[odysee]

Admin, BCG has given the con-call date as 11.11.2020 instead of 15.11.2020.
Too many times one has seen these silly errors.
The company really needs to get its act together in terms of properly editing the information it puts out to the public.

[odysee]

@Logan, I cannot fathom the possible reasons for the business not growing at all in the September quarter.
Even in the last conference call there was indication of optimism for this quarter gone by.
What gives? Maybe the conference call on Sunday 15th will shed light on the business situation. But no Diwali cheer for the shareholders. Disappointed.

[odysee]

Better to maintain a discreet silence. What is there to say or comment on these results?
I have re-read post number #9030 by @aindia. Maybe others should do the same.
Expectations were significantly higher if you factor in those observations, as well as the recently announced results by TTD and Affle.
Maybe another member on this forum is better equipped and more qualified to dissect the financial statements so presented.
Another point to be noted is the observation in the auditor’s report regarding a (new or recently opened?)branch in the US. This is not a subsidiary.
Is this to facilitate the LOC in the main listed company i.e. BCG? Or is there another explanation.

[odysee]

@Antu, I’m not particularly disappointed about the timing of the communication of the September quarter results. At times board meetings do get stretched, and if minor changes have to be made to the figures or some adjustment is required, then additional time has to be factored in.
It’s just the overall lackadaisical attitude of the management toward its shareholders that disappoints me and a lot of others who have so fervently believed in SKR and the company.

[odysee]

I too have been hopeful that BCG would resolve all issues for the last many years.
But unfortunately the target date kept changing, quarter after quarter, year after year.
I think one underestimates the ability of the BCG management to continually disappoint its retail shareholders.
Let us ,for the time being at least , now look at end December 2020 as the magic moment for glory.

[odysee]

@VALUEBUYER001, so as expected, yet another date at NCLT.
A bit of a peculiar way to show that both parties are keen to settle as advised by Rathi_b after meeting with Mr Reddy on Saturday last. Axis Bank has effectively had the preferential allotment funds frozen for the last many months so they cannot be utilised, and BCG keeps asking for another extension each time the date comes up at NCLT.
Wonder when this perceived keenness would actually result in closure.
Don’t hold your breath though-time is not of the essence for the management as we have observed over many years.
But some day ,the weak and exhausted retail investors will croak ‘hurrah! It’s finally done’.

[odysee]

@Rathi_b, thank you and the other members for your briefing on this very satisfactory and reassuring meeting that you had with Mr Reddy yesterday.
It would appear, based on what was indicated, that BDO audit and the consolidation are on hold for some unknown reason.
And if the LOC is imminent, then it may not be being granted to the holding entity(not yet incorporated) of the consolidated lot of subsidiaries ( on hold now) against their collective receivables as was understood.
Of course, this can change and be resurrected if the circumstances so demand.
It would be interesting to see how the LOC arrangement is structured without the consolidation or a ‘Big Five’ audit of the financials and receivables.
With Axis bank not reverting on the offer made by BCG a few weeks ago, does one assume that it would be left to NCLT to decide tomorrow or the next given date of yet another hearing?
Would appreciate your comments without your having to compromise on any sensitive information.

[odysee]

@Logan, waiting for the day-

‘Brightcom Group stock surges….’

Don’t see why that shouldn’t be a recurring headline in our financial papers

But then the game has to be played intelligently and consciously. ‘A Star is born…’ Not that the data to back that up is not there.

[odysee]

@Logan and fellow forum members. I would like to pose a question which you can ponder and respond only if you truly believe in your answer.
Do you really think that Mr Reddy has the interest of retail shareholders at heart? Or his sole focus will be the company and the promoters and his ambitions , and we can peck on the crumbs if they do happen to fall in our domain?
I’m not suggesting that the company and business should not be a priority, but the price action in the market is not kosher in my view. The ball remains in his court whether to continue adding to our misery or to generate goodwill and blessings from 50,000 trusting but unsuspecting souls.

[odysee]

@JRS, just one additional point. We all would not even have this forum if BCG was only about it’s local standalone business. Very average performance and no profit to speak of. And zero competitive advantage in whatever they do locally. I doubt if anyone on this forum would have bought a single share.
Today there upward of 50,000 shareholders. Only because of its international operations. And revenues of 2700 crore. And profits of 400 crore plus on an equity capital of 100 crore plus.

[Author]

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