Tech Darling That Rose 2,500% Now Among India’s Worst Performers
Corporate governance issues have turned shares of Brightcom Group Ltd. into one of India’s worst performers this year after a 2,500% surge in 2021.
(Bloomberg) -- Corporate governance issues have turned shares of Brightcom Group Ltd. into one of India’s worst performers this year after a 2,500% surge in 2021.
The ad-tech firm’s stock has declined more than 70% in 2022, making it the worst performer on S&P BSE 500 Index, data compiled by Bloomberg shows. The slump started after a market regulator raised concerns that some of the company’s disclosures and financial transactions have been “detrimental” to investors.
The beating in the company’s shares has wiped away 129 billion rupees ($1.6 billion) in market value, especially hurting retail investors, who own a majority of the firm. The Securities and Exchange Board of India last year appointed Deloitte Touche Tohmatsu India LLP, to conduct a forensic audit of Brightcom’s financials.
The “SEBI needs to move faster, and strengthen its investigation mechanism,” said Harish Kumar, a partner at Luthra and Luthra Law Offices India. “Inability to ensure compliance can result in erosion of shareholder wealth and faith in the market.”
No analysts track the company’s stock, despite the meteoric rise which pushed its valuation above $2.5 billion a year ago.
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