This smallcap IT company's stock has surged 118% in 18 days; here's why

In the past six months, the stock price of Brightcom Group has zoomed 1006 per cent, as compared to a 20.5 per cent rise in the S&P BSE Sensex

Shares of Brightcom Group were frozen at 5 per cent upper circuit at Rs 74.55, also its fresh 52-week high, on the BSE in Thursday's trade. It was for the ninth straight day that the stock of the smallcap information technology (IT) software company was locked in the upper circuit, rising 55 per cent during the period.

Currently, Brightcom Group is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed. Till 01:31 pm, a combined 1.03 million equity shares had changed hands on the counter and there were pending buy orders for 2.16 million shares on the NSE and BSE, the data shows.

In the past 18 trading days, the stock has more than doubled or risen 118 per cent from the level of Rs 34.39 touched on September 13, 2021, on allotting equity shares to foreign portfolio investors (FPIs) and warrants to high networth individuals. In the last six months, it has zoomed 1,006 per cent, as compared to a 20.5 per cent rise in the S&P BSE Sensex.

On September 16, 2021, Brightcom Group announced the allotment of 140.15 million equity shares to foreign portfolio investors (FPIs) and other investors through a preferential allotment at a price of Rs 37.77 per share. The board had also decided the allotment of 15 million warrants at Rs 37.77 per share, convertible into equal number of equity shares on a preferential basis to Shankar Sharma, vice chairman & joint managing director at First Global. CLICK HERE FOR DETAILS

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 a preferential basis.

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. The company issued bonus shares in the ratio of 1:4 i.e. one bonus share for every four equity shares held by the shareholders of the company.

Brightcom Group (formerly known as Lycos Internet Limited) 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.

Brightcom client list contains some of the biggest names, i.e. Airtel, British Airways, CocaCola, Hyundai Motors, ICICI Bank, ITC, ING, Lenovo, LIC, Maruti Suzuki, MTV, P&G, Qatar Airways, Samsung, Viacom, Sony, Star India, Vodafone, Titan, and Unilever. Brightcom works with agencies like Havas Digital, JWT, Mediacom, Mindshare, Neo@Ogilvy, Ogilvy One, OMD, Satchi&Satchi, TBWA, and ZenithOptimedia, to name a few.