Shares of Brightcom Group Ltd on Thursday slumped 5 per cent to hit their 52-week low of Rs 11.66. The stock has tumbled 21.69 per cent in a month and 38.70 per cent on a year-to-date (YTD) basis. The primary reason behind today's sharp fall was NSE's notice on "potential suspension of trading Brightcom Group shares."
Brightcom, in its clarification, said,"We would like to clarify to the shareholders of the company though this exchange notification about a recent notice issued by the National Stock Exchange (NSE) regarding the potential suspension of trading of Brightcom Group Ltd. shares. This notice has understandably raised concerns among our valued shareholders, and we want to provide clear and transparent information on the matter."
The NSE notice indicates that the suspension of trading is contingent upon the company's failure to declare its quarterly results for the second (Q2) and third (Q3) quarters by June 11, 2024, it stated.
We want to assure you that Brightcom is fully committed to meeting all regulatory requirements and deadlines set by the exchanges, the firm added.
"Our team is diligently working to finalize and release the quarterly results within the stipulated timelines. We are confident that by adhering to these deadlines, we will avoid any suspension of trading and continue to operate smoothly on both the NSE and the BSE," it further stated.
In a separate development, the company today said it appointed Shambhavi Vedantam Murthy and Ravi Chandran as independent directors for a period of 5 years.
The firm also announced that Jayalakshmi Kumari Kanukollu, Surabhi Sinha and Radha Kishore Pandrangi have resigned as an independent directors with effect from May 4, 2024.
On Brightcom's part, there have been delays in terms of financial reporting, annual general meeting (AGM) scheduling and C-suite level appointments. It was also under Securities and Exchange Board of India's (Sebi's) watch over preferential issue of shares and warrants.
On technical setup, the counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 51.93. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 129.56 against a price-to-book (P/B) value of 1.49. Earnings per share (EPS) stood at 0.09 with a return on equity of 1.15.
As per Brightcom's last declaration on shareholding for the quarter ended December 2023, promoters held a 18.38 per cent stake in it.