LIC-backed penny stock under Rs 30 jumps over 14 per cent; Company partners with Star Health Insurance & Board allots 20,00,00,000 warrants
The stock is up by 72 per cent from its 52-week low of Rs 16.15 per share.
On Wednesday, shares of Vakrangee Ltd gained 14.25 per cent to an intraday high of Rs 27.83 per share. The stock is up by 72 per cent from its 52-week low of Rs 16.15 per share. The shares of the company saw a spurt in volume by more than 4 times with 2 crore quantity traded on BSE.
The Company proposes to issue and allot up to 20,00,00,000 Convertible Warrants (Warrants) on a preferential basis to non-promoter investors. This issuance is by Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirement) Regulations, 2018 (SEBI ICDR Regulations), and is subject to regulatory approvals. The details of the proposed issuance, including the names of the investors and their corresponding subscriptions. To accommodate the issuance of these warrants, the company intends to increase its authorized share capital from Rs 125,00,00,000 to Rs 150,00,00,000. This increase will be achieved by dividing the authorized capital into 150,00,00,000 equity shares of Re 1s each. The proposed increase in authorized share capital requires the approval of the Company's shareholders.
The strategic alliance between Vakrangee Limited and Star Health & Allied Insurance Company Ltd. is a pivotal development in India's healthcare insurance sector. By combining Star Health's expertise in providing personalized insurance solutions with Vakrangee's vast network of Kendras, this partnership seeks to address the disparity in healthcare accessibility, particularly in rural and underserved regions. Through Vakrangee's extensive reach, Star Health's affordable health insurance products will be made available to millions of Indians, fostering financial protection and driving significant health insurance adoption. Key features of this collaboration include the widespread availability of Star Health's insurance products through Vakrangee's 21,900+ Kendras, offering affordable health coverage options and a strong focus on financial and social inclusion. By leveraging Vakrangee's presence in remote areas, this partnership will substantially enhance access to healthcare services and provide financial security to underserved sections of society. This alliance aligns with Vakrangee's vision of becoming the most trusted convenience store in India, offering a comprehensive solution for all customer needs.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
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 2,900 crore and as of June 2024, the Life Insurance Corporation of India (LIC) owns a 6.11 per cent stake in the company. The company is almost debt-free as its current debt is just Rs 12 crore which is just 0.5 per cent of its current market cap. The shares of the company have a PE of 587x, an ROE of 3 per cent and an ROCE of 7.3 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.