LIC-Backed Penny Stock Under Rs 30 in Green After Partnering with Central Bank of India for Offering Banking Services on Pan India Basis

The stock’s 52-week high is Rs 37.72 per share and stock is up by 48.7 per cent from its 52-week low of Rs 18.40 per share.

On Wednesday, shares of Vakrangee Ltd gained 3.13 per cent to an intraday high of Rs 27.36 per share. The stock’s 52-week high is Rs 37.72 per share and stock is up by 48.7 per cent from its 52-week low of Rs 18.40 per share.

Vakrangee Limited (VL) has entered into a strategic partnership with Central Bank of India to offer seamless banking services across India. This collaboration aims to leverage Vakrangee's extensive network of 14,000+ Banking Business Correspondents (BCs) and 6,000+ ATMs to provide comprehensive banking solutions to even the remotest parts of the country.

Vakrangee has emerged as one of the leading financial inclusion players in India, with a strong presence in both rural and urban areas. This partnership will further enhance Vakrangee's reach and enable it to provide a wider range of banking services to a larger population.

Under this partnership, Vakrangee will offer a range of banking services, including account opening, deposits, withdrawals, loan and insurance products, and more. This will significantly boost financial inclusion by making banking services more accessible and affordable for individuals and businesses across India.

Vakrangee will also play a crucial role in facilitating government schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY) and Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY). These schemes aim to provide financial security and social safety net to the unbanked and underbanked population of India.

By combining Vakrangee's strong distribution network with Central Bank of India's banking expertise, this partnership aims to bridge the financial gap and empower individuals and businesses across India. This collaboration will not only benefit the customers but also contribute to the overall growth and development of the Indian economy.

Vakrangee Kendras, a network of exclusive branded outlets, provide a wide array of services including banking, insurance, ATM facilities, assisted e-commerce, e-governance, and total healthcare solutions. With a significant presence in Tier-4 to 6 locations, Vakrangee Kendras aim to bridge the gap in banking services, especially in the remote parts of India. The company plans to further expand its product and service offerings by partnering with leading businesses, striving to become a one-stop solution for all customer needs. Vakrangee Kendras envision themselves as the most reliable physical and online convenience store in India, embodying their new brand philosophy of 'AB Poori Duniya Pados Mein' (Your Entire World, Right Next Door).

About the Company

Vakrangee Ltd., established in 1990, is a technology-focused company that aims to bridge the digital divide. It operates a network of "Next-Gen Vakrangee Kendras," franchise-based, one-stop convenience stores offering a range of services to rural, semi-urban, and urban India. The company primarily focuses on BFSI services, including banking, insurance, and ATM facilities. Additionally, Vakrangee provides e-commerce and logistics solutions, such as assisted online shopping, healthcare, travel services, telecom and bill payments, and courier services, effectively catering to the diverse needs of its customers in underserved areas.

The company has a market cap of over Rs 2,800 crore and as of September 2024, the Life Insurance Corporation of India (LIC) owns a 5.07 per cent stake in the company. The company is almost debt-free as its current debt is just Rs 9.58 crore which is just 0.33 per cent of its current market cap. The shares of the company have a PE of 480x, an ROE of 3 per cent and an ROCE of 7 per cent. Investors should keep an eye on this Small-Cap IT stock.

Disclaimer: The article is for informational purposes only and not investment advice.