Brightcom Group Shares Locked In 5% Upper Circuit After 12 Days Of Decline
The stock lost 84% in the previous 12 days after SEBI barred its chairman and MD, CFO, and 22 others for breach of regulations.
Shares of Brightcom Group Ltd. surged to hit the 5% upper band of Rs 13.85 apiece, snapping a 12-day losing streak on Friday.
The stock lost 84% of its market value during the previous 12 days after the Securities and Exchange Board of India, on Aug. 22, barred the company's chairman and managing director, chief financial officer, and 22 others for alleged breach of its regulations on the prohibition of fraudulent and unfair trade practises.
The company had wrongly claimed to have received the full amount of Rs 868 crore from allottees in four issues of shares and warrants on a preferential basis during 2020–22, SEBI said.
This was followed by the Enforcement Directorate conducting searches at the offices of Brightcom Group and the residences of its top officials and auditors. Thereafter, M. Suresh Reddy resigned as the company's chairman and managing director, while Narayana Raju left the post of chief financial officer.
Shares of the company surged 4.92% to Rs 13.85 per share as of 11:15 a.m., compared with a 0.12% advance in the NSE Nifty 50.
The stock has fallen 52.9% on a year-to-date basis. Total traded volume so far in the day stood at 8.2 times its 30-day average. The relative strength index was at 22, implying that the stock may be oversold.