SEBI Order Against Brightcom Group, Stock is Down 90%

Brightcom Group Stock is Down 90%

Brightcom Group is a leading global technology company that provides innovative digital marketing solutions. In this article, we will discuss the latest news related to the company and its recent developments.

Shares of Brightcom Group continued to hit the lower circuit for the fourth straight session. The Shankar Sharma possessed stock has been troubled recently ever since the capital requests watchdog Sebi has issued a show- cause notice and interim order against the company. The notice by the request controller has contended a major fraud in the company’s fiscal statements.

Sebi said that Brightcom Group exaggerated its gains of Rs868.30 crore for the time ended on March 31, 2020, by understating expenditures and using irregular account practices. Shares of Brightcom Group were locked in the lower circuit limit of 5 per cent to Rs12.57. The scrip had settled at Rs13.23 in the former session. It has been hitting lower circuits for the last four sessions in a row, eroding 21 per cent of investors’ wealth. Shares of Brightcom Group have tumbled 56 per cent in the time 2023 so far, while the stock has plunged 65 in the last six months.

The stock is down about 90% in the last one time, when it hit its 52- week high at Rs93.25. Sebi also flagged enterprises and made compliances about the irregular and incorrect form of shareholding pattern of the company. Sebi said that the numbers weren’t correctly reported, violating the morals. ” The scale of fraud is indeed large.

The company tried to disguise account entries in excess of Rs 1,280 crore during 2018- 19 and 2019- 20 to give a malformed picture of its fiscal position,” said Sebi in its order. Sebi’s inquiry set up that Brightcom Group’s redounded in an exaggerated nethermost line due to over capitalisation of the impalpable means.

Despite this steep fall, shares of Brightcom group have delivered a return of 450 per cent in the last five times, while it’s still 700 per cent above its Covid- 19 lows. Seasoned investor and Dalal Street stager Shankar Sharma possessed equity shares or a1.24 per cent stake in the company, as of December 31, 2022. The company is yet to advertise its shareholding pattern for the March 2023 quarter.

The company recently announced its Q3 FY22 results, showcasing significant growth and strong financial performance. According to the results, Brightcom Group’s consolidated revenue grew by 67% YoY to INR 178.9 crores, while its EBITDA grew by 62% YoY to INR 35.4 crores. The company’s profit after tax (PAT) grew by a whopping 372% YoY to INR 23.5 crores, making it one of the most successful quarters in the company’s history.

The growth in revenue and profits can be attributed to Brightcom Group’s continued focus on innovation and technology-driven solutions. The company has been expanding its offerings in digital marketing, programmatic advertising, and artificial intelligence, which have resonated well with clients across industries.

Brightcom Group’s recent acquisition of MediaMint, a programmatic advertising technology company, is also a significant development for the company. This acquisition has strengthened Brightcom’s programmatic advertising capabilities, enabling it to offer end-to-end solutions for clients globally. With this acquisition, Brightcom Group has become one of the leading programmatic advertising players in India, with a market share of around 12%.

The company’s recent recognition at the ETBrandEquity Martech Asia Awards 2021 is another feather in its cap. Brightcom Group won the award for Best Programmatic Advertising and Media Buying Solution Provider, further cementing its position as a leading player in the digital marketing space.

In conclusion, Brightcom Group’s recent financial results, acquisitions, and recognition at various industry awards are indicative of the company’s growth and continued focus on innovation and technology-driven solutions. As the digital marketing landscape continues to evolve, Brightcom Group’s offerings and expertise position it as a key player in the industry, with significant potential for future growth.