Brightcom is now among the poorest performers this year, following a 2,500% increase in 2021
According to Bloomberg data, the ad-tech firm's stock has dropped more than 70% in 2022, making it the worst performer on the S&P BSE 500 Index.
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After a 2,500% increase in 2021, shares of Brightcom Group Ltd. have become one of India's worst performers this year due to corporate governance problems.
According to Bloomberg data, the ad-tech firm's stock has dropped more than 70% in 2022, making it the worst performer on the S&P BSE 500 Index. The downturn began after a market regulator expressed worry that some of the company's disclosures and financial operations were "harmful" to investors.
The company's stock has lost 129 billion rupees ($1.6 billion) in market value, particularly impacting ordinary investors, who hold the bulk of the company. Last year, the Securities and Exchange Board of India tasked Deloitte Touche Tohmatsu India LLP with conducting a forensic audit of Brightcom's financials.
"SEBI must move faster and tighten its inquiry procedure," according to Harish Kumar, a partner at Luthra and Luthra Law Offices India. "Failure to maintain compliance may result in the erosion of shareholder wealth and market faith."
Despite the company's spectacular climb that put its valuation past $2.5 billion a year ago, no analysts follow its stock.
