Brightcom Group shares halt 15-day lower circuit streak, crawl 5% higher

Brightcom Group shares were again under the spotlight on Tuesday as the stock broke its 15-session streak of hitting lower circuits. The beleaguered counter was locked in the buyer's circuit for the session, suggesting the buying interest of the investors in the company.
 

Shares of Brightcom Group, which settled at its new-52-week low of Rs 9.27 on the last session of April 2023, hit an upper circuit of 5 per cent on Tuesday to Rs 9.73. The stock lost more than half of its value in the last 15 trading sessions from its value at Rs 18.59 on April 6, 2023.

The stock has wiped out more than 90 per cent of its value in the last one year and turned into a penny stock. The stock has been in below Rs 10 range for the first time after June 2021, just before its exponential rise, which turned into a multibagger.

There is no theoretical definition for penny stocks. However, stocks in single-digit prices or below Rs 10 are bracketed in this club. Brightcom Group, with a market capitalization of less than Rs 2,000 crore has fallen into the same category, luring many punters to its dirt-cheap price.
 

Shares of Brightcom Group have been under pressure since markets regulator SEBI issued a show cause notice to the ad-tech firm. It also flagged concerns and made observations about the irregular and incorrect filing of the shareholding pattern of the company. SEBI said that the figures were not rightly reported which violated the norms.

The watchdog made certain key observations, Brightcom said, which were on the impairment charges in its balance sheet for FY20 amounting to Rs 868.30 crore, shareholding pattern, compliance and reporting, among others. The company, in its response, said legal advice is sought with respect to the overall matter.
 

Brightcom Group is backed by seasoned Dalal Street investor Shankar Sharma who owned 2,50,00,000 equity shares, or a 1.24 per cent stake, in the company. His stake in Brightcom Group is currently worth Rs 24.32 crore.

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