Brightcom Group shares: BCG assurance fails to restrict stock fall

Shares of Brightcom Group extended recent fall, even as the company reassured its sharehoders the right course of action will be taken in the light of Sebi's recent interim order barring CFO, CMD to take any key role in the organisation. The matter relates to utilisation of preferential issue, wherein the markets regulator felt that proper disclosures were not made in the annual report of the company with respect to utilisation proceeds.

The stock stood at Rs 21.84, down 5 per cent. It was down 5 per cent in the previous session.

Sebi has restrained the company's top executives Suresh Kumar Reddy and Narayan Raju from holding any directorial positions until further notice. Reddy is the promoter-cum-chairman and managing director of Brightcom Group, and Raju is the chief financial officer. The markets regulator also restrained ace investor Shankar Sharma from selling shares in the company. In total, a total of 25 entities and individuals will be hit by the Sebi order.

"We fully understand that news of such nature may raise concerns among our valued shareholders, and we wish to reassure the right course of action will be taken," Brightcom Group said on Wednesday. The stock, however, hit its 5 per cent circuit limit at Rs 21.84 on Thursday.

BCG said it immediately set up a dedicated internal team to thoroughly review the details and implications. The company is evaluating potential action courses to address this situation effectively.

"We are in consultation with legal experts to ensure that all our responses are in the company's and its shareholders' best interest," Brightcom Group said.

Brightcom Group had in FY21 and FY22 issued warrants/shares on preferential basis on four occasions and raised Rs 867.78 crore from a total of 82 allottees. During its investigation, Sebi delved into the receipt of warrant/share application money from some of the preferential allottees. It was observed that in respect of 22 allottees who were allotted 25,76,50,000 equity shares for Rs 245.24 crore, the company had received only Rs 52.51 crore and the remaining amount of Rs 192.73 crore was either not received by the company or was routed back to the said allottees through multiple layering of transactions involving subsidiaries and conduits.

"We will ensure regular communication on this subject and provide updates as and when significant developments occur. We appreciate your patience and understanding during this time," Brightcom Group said adding that "We will navigate through this situation, keeping our long-term vision and the interests of our shareholders at the forefront."

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