Brightcom Group Ltd shares on Monday hit their upper circuit limit as the penny stock settled 5 per cent higher at Rs 9.97. A scrip with a below Rs 10 value (per share) is usually considered as penny. Today's upmove came after the beleaguered firm announced that it will declare results of second quarter (Q2 FY24) and half year ended on September 30 last year tomorrow (June 11).
"Notice hereby given that the meeting of the Board of Directors of the company is scheduled to be held on Tuesday, June 11, 2024, at the registered office situated at the Floor 5, Fairfield by Marriott, Road No: 2, Nanakramguda, Gachibowli, Hyderabad, Telangana, 500032 at 7 pm inter-alia, to consider and approve the un-audited financial results for the second quarter (Q2 FY24) & half year ended on September 30, 2023," it stated. BCG didn't share any update on Q3 FY24 results.
The counter turned 'bearish' following NSE's notice of "potential suspension of trading." It has declined 18.94 per cent in the past month and 47.58 in 2024 so far.
"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. We want to assure you that Brightcom is fully committed to meeting all regulatory requirements and deadlines set by the exchanges," BCG mentioned.
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.
In this regard, the company clarified on a range of topics such as shareholding, MediaMint, appointments and employee stock option plan (ESOP). On shareholding pattern, BCG said, "We understand the importance of transparency in our shareholding structure. The SHP declaration will be made in accordance with regulatory guidelines and will be available for your review shortly."
It also mentioned that the company has initiated the process to cancel the shares that were previously issued to MediaMint. "As we make further progress on this, we will keep you informed," the firm added.
"We have already appointed some new Board members of impeccable repute. We are in talks with some potential new Board members and will announce their appointment soon. Internally, while we are restructuring our team to enhance operating efficiency, we have also finalised candidates for the positions of CFO and CS. We will be announcing their appointments soon," it stated on the appointment of board members and senior executives.
For ESOP, the company said it is finalising the details of the plan to ensure it aligns with our long-term goals and provides meaningful incentives to our employees. We will provide a comprehensive update on the ESOP plan once it is fully developed and approved by the board, it also said.
"We are working on making more announcements that will contribute to the stability and growth of Brightcom Group Ltd. in the coming months. These announcements will include strategic initiatives and partnerships, as well as updates on our progress in various business areas. Our goal is to ensure a robust and sustainable growth trajectory for the company, fostering long-term value for our shareholders," BCG further stated.
On technical setup, the counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 37.98. 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 106.02 against a price-to-book (P/B) value of 1.22. Earnings per share (EPS) stood at 0.09 with a return on equity of 1.15.
As of March 2024, promoters held an 18.38 per cent stake in the company. Besides this, seasoned investor Shankar Sharma owned 1.14 per cent or 2,29,25,000 shares of BCG.