LIC-Backed Penny Stock Under Rs 35 Jumps After Partnering with Canara Bank for Offering Banking Services

The stock’s 52-week high is Rs 37.72 per share and the stock is up by 70 per cent from its 52-week low of Rs 18.45 per share.

Vakrangee Limited, a prominent technology-driven company, 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. By providing convenient access to these essential services, Vakrangee Kendras will significantly contribute to the financial empowerment of rural populations.

This partnership between Vakrangee and Canara Bank signifies a significant step towards transforming banking experiences in rural India. By offering a one-stop solution for various financial needs, Vakrangee Kendras are poised to become the most trusted convenience store, bringing the world closer to its customers. This innovative approach aligns with Vakrangee’s vision of bridging the digital divide and empowering individuals through technology.

Additionally, 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.

On Thursday, shares of Vakrangee Ltd gained 7.46 per cent to Rs 31.39 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 70 per cent from its 52-week low of Rs 18.45 per share.

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 3,300 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.