LIC-Backed Penny Stock Under Rs 35 Jumps After Board o Issue and Allot Upto 35,00,00,000 Convertible Warrants to FIIs & Non-Promoters
. The stock’s 52-week high is Rs 37.72 per share and the stock is up by 75.61 per cent from its 52-week low of Rs 18.45 per share.
Vakrangee Limited is undertaking a preferential allotment of 35 crore Convertible Warrants to non-promoter investors. These Warrants, issued at Rs 28 per warrant, will be convertible into equity shares of the company. This capital raising initiative is being conducted under applicable Indian laws, including the Companies Act, 2013 and SEBI regulations. The allotment will be made on a private placement basis to eleven investors, including Eminence Global Fund PCC, Multitude Growth Funds Limited and Nexpact Limited.
The Warrants issued by Vakrangee Limited will have a conversion period of eighteen months from the date of allotment. Investors will be required to pay 25 per cent of the warrant price upon subscription, with the remaining 75 per cent payable upon exercising the conversion option. This capital infusion through the issuance of Convertible Warrants is expected to strengthen Vakrangee Limited's financial position and support its future growth plans.
Earlier, Vakrangee has forged a strategic partnership with Canara Bank to extend its reach and provide a comprehensive suite of banking services to underserved and unbanked regions. This collaboration empowers Vakrangee’s extensive network of Kendras to deliver essential financial services, such as account opening, deposits, withdrawals, loan repayments, and more, to remote and marginalized communities in the East Zone. By leveraging its strong presence in rural areas, Vakrangee aims to bridge the financial inclusion gap and empower individuals with access to formal banking services. Vakrangee Kendras, acting as Corporate Business Correspondents (CBCs), will play a pivotal role in delivering these banking services. These Kendras, strategically located in Tier-4 to Tier-6 locations, will offer a wide range of services, including social security schemes, Aadhaar seeding, and pension-related services.
On Tuesday, shares of Vakrangee Ltd gained 2.27 per cent to Rs 32.40 per share from its previous closing of Rs 29.21 per share. The stock’s 52-week high is Rs 37.72 per share and the stock is up by 75.61 per cent from its 52-week low of Rs 18.45 per share.
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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 3,400 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.