ब्राइटकॉम ग्रुप के शेयर 6,50,000 छोटे निवेशकों के साथ हैं, जिनके पास तत्काल बाहर निकलने की कोई संभावना नहीं है।

ब्राइटकॉम ग्रुप के शेयर 6,50,000 छोटे निवेशकों के साथ हैं, जिनके पास तत्काल बाहर निकलने की कोई संभावना नहीं है।

Brightcom Group shares with 6,50,000 small investors who have no immediate exit in sight.

Between March 2021 and 2024, retail investors in Brightcom Group surged tenfold, only to face significant losses and a lack of exit options following a suspension of trading by the NSE due to non-compliance issues.

  • Business
  • 197
  • 15, Jun, 2024
Jyoti Ahlawat
Jyoti Ahlawat
  • @JyotiAhlawat

Brightcom Group shares with 6,50,000 small investors who have no immediate exit in sight.

Retail investors in the Brightcom Group, specifically those with share capital under ₹2 lakh, increased tenfold between March 2021 and 2024. Currently, they face no immediate exit. "I held Brightcom shares until they reached ₹115 and even received bonus shares, but I didn't sell. Now, I regret that decision. I'm left with 15,000 to 20,000 shares," shared 35-year-old Samrat (name changed) about his investment in Brightcom Group shares.

Samrat is one of the 6.56 lakh small retail investors now stuck with shares of the troubled digital marketing firm Brightcom, following the National Stock Exchange's (NSE) suspension of trading in the stock on Friday, June 14, due to non-compliance with the NSE's master circular.

Small investors now hold more than 41.7% of Brightcom stock. Samrat isn't alone in this predicament. Another retail investor revealed he is stuck with over 2,500 shares purchased at ₹57, while another has 10,000 shares bought at ₹47. Before the suspension, Brightcom Group shares had plummeted to ₹9.38.

Samrat was initially convinced by comparisons to the ad-tech platform Affle India. "News of promoters buying shares boosted confidence, leading to significant upper circuits. Various advisors also recommended the stock," he added.

The company's issues became apparent in March 2022 when the Securities and Exchange Board of India (SEBI) ordered a forensic probe into alleged lapses in corporate governance from the three years before March 2021, during which the company raised nearly ₹870 crore from 82 investors through preferential issues (an easier method of fundraising via issuing shares to select investors).

In March 2021, Brightcom shares were trading at ₹5 each, and the number of retail shareholders was 63,310. In the following nine months, the stock peaked at ₹121 (adjusted for a bonus issue), and the number of small investors tripled to over 2 lakh. The decline started soon after. The stock typically traded in extremes—either upper or lower circuits of 5%. In June 2022, Brightcom Group shares experienced 13 consecutive lower circuits of 5%. Despite this, small investors held on. Some chose to "buy the dip," others averaged down, hoping for a change in fortunes, while some were reassured by the involvement of big market names.

"When the stock began hitting lower circuits, we stayed hopeful for gains and didn't sell a single stock," Samrat explained.

Meanwhile, the value of Affle India's shares continued to rise, increasing over seven and a half times the initial investment in the past five years. Over the last year, while Affle India gained 21%, Brightcom shares lost more than two-thirds of their value.

Nonetheless, between December 2023 and March 2024, over a lakh new investors took a chance on the stock with an uncertain future.

News Reference

Jyoti Ahlawat

Jyoti Ahlawat

  • @JyotiAhlawat