Why This Small Cap Stock Is At Upper Circuit For Second Straight Day

Brightcom Group shares jumped by nearly 5% for two consecutive days, bouncing back from a 12-day slump during which they lost 84% of their value.

What Happened? This drastic drop came after the Securities and Exchange Board of India (SEBI) called out and punished the company on Aug. 22. SEBI took action against the company’s top brass, including the chairman, CFO, and 22 others, accusing them of shady trading practices.

SEBI claims that Brightcom falsely reported receiving ₹868 crore between 2020-22 from four separate share and warrant issues.

See also: Why This Shankar Sharma-Backed Micro Cap Stock Is Skyrocketing 7% Today

Adding to the company’s woes, the Enforcement Directorate got involved, raiding Brightcom’s offices and the homes of its senior staff and auditors. Amid this storm, M. Suresh Reddy, the chairman and managing director, stepped down, and Narayana Raju, the CFO, also quit.

Price Action: Shares of the company were locked in 5% upper circuit at ₹14.50 as of 10:25 am on Monday. The stock has fallen 50.26% on a year-to-date basis.

Read next: Adani Ups Stakes, Railway Corridor To Middle East And More: Stories From The Weekend You Don’t Want To Miss

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: MoversTrading IdeasBrightcom Group