Brightcom Group rallies ahead of preferential issue, zooms 174% in a month

Brightcom Group had signed a 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

Shares of Brightcom Group were locked in upper circuit of 5 per cent at Rs 34.85 on the BSE in Tuesday's session ahead of board meeting to consider preferential issue of equity shares to specific individuals.

The stock of the information technology (IT) software company was trading at its 52-week high level. It was frozen in the upper circuit for seventeenth straight trading day on the BSE. In the past one month, it has zoomed 174 per cent from level of Rs 12.74 on June 14, 2021, as compared to a marginal 0.34 per cent rise in the S&P BSE Sensex. Till 11:53 am, a combined 376,000 shares had changed hands and there were pending buy orders for 11.6 million shares on the NSE and BSE combined.

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.

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.

The details regarding the name of the target company have been kept confidential in light of the confidentiality clause of the LOI. A definitive agreement will follow after the completion of the customary business, legal and financial due diligence, the company had said in a press release. READ MORE

The company further said its board is scheduled to meet on July 13, 2021, to discuss the developments regarding the recently announced LOI and the additional capital needed to execute the proposed acquisition plans. The company is also to consider the preferential issue of equity shares to specific individuals and entities subject to shareholders' approval through EGM and regulatory approvals, it said.

Earlier, on June 28, the board had recommended a bonus issue in terms of one bonus share for every four equity shares (1:4) held by the shareholders of the company as on a record date to be set by the board.