Brightcom Group provided an important update in an investor presentation on Sunday, detailing its progress towards resuming normal trading. The company has been working closely with both the NSE and BSE to address compliance issues that led to the suspension of regular trading. Currently, Brightcom shares are only traded in the trade-for-trade segment under the ‘Z’ category, where trading is limited to the first trading day of each week, and transactions are delivery-based.
Compliance Efforts Underway
Both stock exchanges, NSE and BSE, have given Brightcom Group a specific list of actions that need to be completed to lift the trading suspension. The company is actively working through this list and is confident that these requirements will be fulfilled in the near term. While exact timelines for the resumption of normal trading are still being finalized, the company assured investors that this matter is receiving utmost attention.
Impact on Investors
Brightcom Group’s shares were suspended from regular trading in June 2023, impacting over 6.5 lakh small investors who were left with limited exit options. This number could be even higher as the June quarter shareholding details have not yet been released.
Retail investors, particularly those holding shares worth less than ₹2 lakh, saw a significant increase between March 2021 and 2024. Unfortunately, more than 41.7% of Brightcom’s stock is now held by small investors who are left waiting for the company to resolve its issues.
Company Expansion Plans
Despite these challenges, Brightcom Group is looking to expand its presence in global markets, particularly in Europe, the Middle East, Africa, and Asia Pacific. The company aims to enhance its digital footprint by establishing new operations under the name “Trenova Corporation” with a focus on London and Hong Kong.
SEBI Investigation and Stock Performance
The company’s troubles began in March 2022 when SEBI ordered a forensic probe into alleged corporate governance lapses. The investigation covers the period before March 2021, during which Brightcom raised nearly ₹870 crore through preferential share issues.
Brightcom’s stock performance has been volatile. From trading at ₹5 per share in March 2021, it reached a peak of ₹121 in just nine months, attracting over 2 lakh small investors. However, the stock soon entered a phase of lower circuits, causing significant losses for investors. Despite this, many retail investors chose to hold onto their shares, hoping for a turnaround.
Future Outlook for Brightcom Shareholders
Trading in Brightcom shares will remain suspended for another 15 days, after which trading will resume under the trade-for-trade segment in the ‘Z’ category. Stocks in this category can only be traded on the first trading day of each week for the next six months. Investors must take delivery of the shares, and same-day buy-and-sell transactions will not be allowed.
In just three years, Brightcom has gone from being a multibagger to a cautionary tale for investors, highlighting the risks of FOMO (fear of missing out) in the stock market.
Brightcom Group continues to navigate these challenges, working to meet compliance requirements and restore normal trading operations.
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