This smallcap IT stock has almost tripled in one month
Going debt-free, bonus issue, acquisition, preferential issue are some of reasons behind 161% rally in Brightcom Group share over the last month
Shares of Brightcom Group hit another 52-week high of Rs 46.55 apiece on Thursday after they were locked in an upper circuit of 5%. The scrip was locked in the upper circuit for the 11th consecutive session on the BSE on July 22. In fact, over the last month, the shares have almost tripled from Rs 17.83 on June 23 to Rs 46.55 in today’s session skyrocketing 2.61times despite the markets being volatile for the last entire month.
Citing abnormal price rise on July 19 BSE has sought clarification from the company with reference to the movement in volume.
Clarifying the price movement, Brightcom Group informed the exchanges that the increase in volumes of the scrip reflects that the movement “is purely due to market conditions and are market-driven secondary to the material developments that have been published of late.”
Bonus for shareholder
The company further added that there have been multiple developments on the organisational front that includes paying off all bank loans and becoming a debt-free company, announcement of bonus issue in the ratio of 1:4 i.e. one bonus share for every four equity shares held by the shareholders of the company. The board is yet to set a record date for the bonus issue. That apart the company has announced dividends for the second consecutive year.
That apart on July 8 Brightcom Group said that it has signed a Letter of Intent (LoI) to acquire a digital marketing services company based out of India with 1100 employees and premium clients such as Netflix, Disney, Bitly, Hulu and The New York Times.” However, the details regarding the name of the target company have been kept confidential in light of the confidentiality clause of the LoI.
Whereas on July 13, 2021, companies board approved the issue and allotment of 119.62 million equity shares to foreign portfolio investors (FPIs) and other investors through a preferential allotment at Rs 31.17 per share for an allotment size of Rs 372.87 crore. The post-funding dilution is 12.5%, of which SEBI registered FPI contribution is 10.5%, the company said in a statement.
Citrus Global Arbitrage Fund, Calypso Global Investment Fund, Navigator Emerging Market Fund, Connecor Investment Enterprises Ltd and LGOF Global opportunities Ltd are among those allotted 20 million equity shares each on a preferential basis.
About Brightcom Group
Brightcom Group is a leading global provider of comprehensive online or digital marketing services to: direct marketers, brand advertisers, and marketing agencies. The Company is divided into three major divisions namely media (Ad-Tech and digital marketing), software services, and future technologies. The Company’s primary clients are end advertisers, agencies and publishers, but also include ad exchanges & networks.
Its clients include leading blue-chip advertisers like Airtel, British Airways, Coca-Cola, Hyundai Motors, ICICI Bank, ITC, ING, Lenovo, LIC, Maruti Suzuki, MTV, P&G, Qatar Airways, Samsung, Viacom, Sony, Star India, Vodafone, Titan, and Unilever. Publishers include Facebook, LinkedIn, MSN, Yahoo! and Twitter. Brightcom works with agencies like Havas Digital, JWT, Mediacom, Mindshare, Neo@Ogilvy, Ogilvy One, OMD, Satchi&Satchi, TBWA, and ZenithOptiMedia.