Stock of this IT company has zoomed 248% in 26 days

Shares of Brightcom Group were locked in the 5 per cent upper circuit band for the 10th straight day at Rs 44.35 on the BSE on Tuesday

Shares of Brightcom Group continued their northward movemen and were locked in the 5 per cent upper circuit band for the 10th straight day at Rs 44.35 on the BSE on Tuesday, in an otherwise weak market.

Till 12:10 pm, a combined 631,455 equity shares had changed hands and there were pending buy orders for 4.77 million shares on the NSE and BSE, the exchange data shows. In comparison, the S&P BSE Sensex was 1 per cent or 529 points down at 52,024.

The stock of the information technology (IT) software products company hit a new high in the intra-day trade today. In the past 26 sessions (since June 16), it has zoomed 248 per cent, from a level of Rs 12.74 per share. In comparison, the S&P BSE Sensex was up 1 per cent during the same period.

Brightcom Group provides comprehensive online or digital marketing services to direct marketers, brand advertisers, and marketing agencies. The company is divided into three major divisions: Media (Ad-Tech and digital marketing), software services, and future technologies. Its primary clients are end advertisers, agencies and publishers, but also include ad exchanges and networks.

Clarifying on the price movement, Brightxom 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 materal developments that have been published of late". READ HERE

There have been multiple developments that have happened in the Brightcom Group in the year 2021. The material developments include 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 as on a record date to be set by the board.

Besides, the company is intent to acquire a leading digital marketing services company with a headcount of over 1100 people. On July 8, Brightcom Group announced 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.

On July 13, 2021, Brightcom Group’s board approved 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 per cent, of which SEBI registered FPI contribution is 10.5 per cent, 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 preferential basis.