Brightcom board okays 2:3 bonus, preferential offer to non-promoters

Brightcom rewarded its shareholders in July last year with one bonus share for every four existing ones.

Digital marketing solutions provider Brightcom Group on Wednesday said its board of directors had approved a resolution to issue bonus shares in the ratio of two for every three existing shares of Rs 2 each.

This is the second bonus issue by the Hyderabad-based company in eight months. Brightcom rewarded its shareholders in July last year with one bonus share for every four existing ones.

“The move will not only improve liquidity but also unlock value,” the company said in a statement on the latest bonus issue.

Stock markets were shut on Wednesday on account of Republic Day. Brightcom shares hit a lower circuit of Rs 160 on Tuesday and closed at Rs 163.75, a fall of 2.76% from the previous close.

The ad-tech company’s board, which met on Tuesday, also allotted 132 million shares to seven non-promoter entities on a preferential basis at a price of Rs 37.77 each to raise Rs 498.56 crore to be deployed for financing organic and inorganic growth plans.

On December 7, Brightcom Group had announced the acquisition of digital consulting and operations provider MediaMint for Rs 566 crore in a cash and stock deal, considered one of the largest purchases in the space.

In July last year, the company resolved to offer a 12.5% stake to foreign portfolio investors (FPIs) and others, valuing the $350 million company by revenue at around Rs 3,000 crore.

Brightcom Group chairman and managing director M Suresh Kumar Reddy informed stock exchanges that the latest allotment of shares on a preferential basis expands the company’s share capital to Rs 236.33 crore divided into 1181.6 billion equity shares of Rs 2 each, fully paid-up.

For the quarter ended December 2021, the company reported year-on-year growth of 168% in post-tax profit at Rs 371 crore and an increase of 130% in consolidated revenue at Rs 2,021 crore.

“The overall performance was impressive owing to increased consumer usage of digital media and digital channels to conduct commerce across the world, post the pandemic,” the company said in a statement.

The ad-tech company, with a presence across 25 locations, counts clients including Airtel, British Airways, Coca-Cola, Hyundai Motors, ICICI Bank, ITC, ING, Lenovo, Life Insurance Corporation of India, Maruti Suzuki, MTV, PGG, Qatar Airways, Samsung, Viacom, Sony, Star India, Vodafone, Titan, and Unilever, among others.
Brightcom works with agencies like Havas Digital, JWT, Mediacom, Mindshare, Neo@Ogilvy, Ogilvy One, OMD, SatchiGSatchi, TBWA, and ZenithOptimedia, among others.