LIC-Backed Penny Stock Under Rs 35 Hit 10 Per Cent Upper Circuit as Board Is Likely to Raise Funds via Rights Issue or Any Other Mode
The stock’s 52-week high is Rs 37.72 per share and the stock is up by 65.5 per cent from its 52-week low of Rs 18.45 per share.
On Monday, shares of Vakrangee Ltd hit a 10 per cent upper circuit to an intraday high of Rs 30.54 per share from its previous closing of Rs 27.77 per share. The stock’s 52-week high is Rs 37.72 per share and the stock is up by 65.5 per cent from its 52-week low of Rs 18.45 per share.
Vakrangee Limited has announced that its Board of Directors will convene on Saturday, December 21, 2024, to deliberate upon various matters, including a significant proposal to raise funds. This fundraising initiative may involve a rights issue, warrants, preferential issues, a qualified institution placement, or any other permissible mode or combination thereof. The funds raised will be utilized to issue equity shares or other eligible securities, subject to necessary regulatory and statutory approvals, including the consent of the Company's shareholders. To accommodate potential scheduling conflicts, the Company has extended the option for Board members to participate in the meeting via video conferencing.
Earlier, the company partnered with the Central Bank of India to offer banking services across India. Leveraging Vakrangee's 14,000+ BCs and 6,000+ ATMs, the partnership aims to provide comprehensive banking solutions to remote areas. Vakrangee, a leading financial inclusion player, will offer account opening, deposits, withdrawals, loans, insurance, and facilitate government schemes like PMJDY and PMJJBY. This collaboration will bridge the financial gap and empower individuals and businesses, contributing to India's economic growth. Vakrangee Kendras, a network of exclusive branded outlets, offer various services including banking, insurance, ATM facilities, e-commerce, e-governance, and healthcare solutions. With a significant presence in Tier-4 to 6 locations, Vakrangee Kendras aim to bridge the gap in banking services, especially in remote areas. The company plans to expand its product and service offerings, striving to become a one-stop solution for all customer needs.
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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 3,200 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 0.3 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.