The shares of this two-decade-old firm have been suspended from trading on the NSE and BSE due to the company’s non-compliance with SEBI regulations.
Effective today, June 14, trading of Brightcom Group shares has been suspended on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) until the company complies with the master circular issued by the NSE.
Prior to the suspension, Brightcom Group shares were locked in a 5% lower circuit for two consecutive sessions on Wednesday and Thursday.
In May, the NSE issued a notice to Brightcom Group Ltd. regarding the potential suspension of trading, raising concerns among shareholders and leading to a 28% decline in the stock.
The NSE announced a trading suspension notice on May 15, indicating that trading in the Brightcom Group shares would be suspended if the company failed to declare its quarterly results for Q2 and Q3 of 2023-24 by June 11, 2024.
On May 16, Brightcom Group stated it aimed to declare these quarterly results by the deadline. However, the company has only shared the earnings report for the September quarter so far.
Trading in Brightcom Group shares will remain suspended for the next 15 days. After this period, trading will resume on a trade-for-trade basis in the Z category, but only on the first trading day of each week for the next six months.
A ‘Z’ Category stock is one that has failed to meet the listing requirements of the exchanges, has not resolved investor complaints, and/or has not made the necessary arrangements with both depositories.
As of the March quarter, the shareholding pattern of the company shows that the promoter held an 18.38% stake, FIIs held 10.70%, and retail investors held 70.76%.
In December of last year, nine mutual funds had exposure to the Brightcom Group with a 0.17% stake, which has now decreased to three funds holding a 0.15% stake.
Brightcom Group Ltd is engaged in providing comprehensive online or digital marketing services to direct marketers brand advertisers and marketing agencies.
The Company offers digital marketing solutions to business agencies and online publishers worldwide.
On June 11, 2024, the company announced its financial results for the July-September quarter of the fiscal year 2024. During this quarter, Brightcom Group’s revenue remained steady at ₹112 crore.
The net profit for the period increased slightly to ₹63 lakh from ₹59 lakh in the same quarter last year, although the profit margin decreased to 0.9% from 3.47% the previous year.
Ace investor Shankar Sharma held a 1.14% stake in the Brightcom Group at the end of the March quarter. Besides Sharma, there were 6,56,000 retail investors holding shares in the Brightcom Group as of March 31.
In February, Sharma and four other individuals received relief from market regulator SEBI regarding an alleged round-tripping of funds by Brightcom Group’s promoters. SEBI lifted the ban on Sharma from selling his stake in the company after transaction details were provided.
As of June 13th, the last traded price of Brightcom Group Ltd was Rs 9.45, closed at a 5% lower circuit. With a market capitalization of Rs 1,906 crore.
Written by Omkar Chitnis
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