Brightcom locked in upper circuit for second day in a row

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Brightcom shares were locked in a 5 percent upper circuit on June 7, two days after the ad tech and new-media company told the exchanges that it would take remedial measures to improve its financial disclosures.

The stock closed at Rs 21.50 on the National Stock Exchange, higher by 4.8 percent. Its two-day gain is close to 10 percent.

"We assure you that we are fully cooperating with SEBI, taking their observations seriously, and working diligently to address all the points mentioned in their Show Cause Notice, Brightcom said in an exchange filing on June 5.

Brightcom’s clarification was a response to a Moneycontrol report which said the company had not disclosed the financials of its subsidiaries, which were unaudited, and there were accounting issues as well. Brightcom lacked clarity in the "other advances" section of the balance sheet, the report said.

Also Read: Brightcom: Analysis of financial statements before SEBI order reveals several governance lapses

Following the report, Brightcom uploaded the audited financials of its material subsidiaries on its website.

In April 2023, the Securities and Exchange Board of India (Sebi) slapped a show-cause notice on the company over alleged irregularities in financial accounting and non-disclosure of material information.

Brightcom shares saw a surge in retail interest back in 2021 when the stock skyrocketed from Rs 3 to Rs 117. As financial irregularities were revealed, the company lost close to 90 percent of investors' wealth in a matter of 16 months.

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