Trading in Brightcom Group shares was frozen on June 22 morning after the stock hit the lower end of the 5 percent intraday circuit filter on both the BSE and the National Stock Exchange (NSE).
The stock price dropped to Rs 33.32 on the BSE and Rs 33.05 on the NSE, ending a 12-day winning streak that saw it rally from Rs 19.77 to a high of Rs 36.45.
At 10.45 am, there were over 92 lakh outstanding sell orders on the NSE and over 55 lakh on BSE.
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Brightcom Group, a digital marketing company, has been at the centre of controversy due to a drastic decline in investors' wealth, with a 90 percent erosion over the past year. In Q4 FY23, Brightcom Group reported a net profit of Rs 229.15 crore, compared to Rs 223 crore in the same quarter of the previous year.
Recently, the market regulator Securities and Exchange Board of India (Sebi) pulled up the company for accounting irregularities and disclosure omissions. Brightcom’s asset impairment impact of Rs 868 crore was not reflected in its profit and loss account. The market regulator also said the company overstated its profits in the previous financial years.
The company told the stock exchanges that it was taking remedial measures to enhance its financial reporting.
Also Read: Brightcom: Analysis of financial statements before SEBI order reveals several governance lapses
On June 14, Sebi also levied fines of Rs 40 lakh on Brightcom Group and its promoters for flouting regulatory norms.
It slapped a fine of Rs 12 lakh on Geetha Kancharla, Rs 6 lakh each on Vijay Kumar Kancharla HUF, Vijay Kumar Kancharla, and chairperson and MD M Suresh Kumar Reddy and Rs 5 lakh each on SV Rajyalaxmi Reddy and Brightcom Group Ltd.
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