Vakrangee Limited, a leading technology company focused on financial, social, and digital inclusion, has announced its decision to raise ₹980 crore through preferential allotment of convertible warrants to non-promoter investors. The decision, taken during the board meeting held on December 21, 2024, is aimed at raising additional capital for the company’s growth and expansion plans. This move comes as the company focuses on strengthening its financial position and operational capacity.
Key Data
| Particulars | Details |
|---|---|
| Company Name | Vakrangee Limited |
| Fundraising Amount | ₹980 crore |
| Convertible Warrants | 35 crore (Preferential Allotment to Non-Promoters) |
| Market Cap | ₹3,533.15 crore |
| Share Price | ₹32.78 (2.09% increase on December 21, 2024) |
| 52-Week High | ₹37.73 (October 1, 2024) |
| 52-Week Low | ₹18.45 (December 21, 2023) |
| Beta (Volatility) | 1.5 (Indicating high volatility) |
| Shareholder Meeting Date | January 15, 2025 |
Details of Fundraising
The board has approved issuing 35 crore convertible warrants via preferential allotment to 11 non-promoter investors. The company aims to utilize the raised capital for:
- Strengthening financial stability.
- Expanding its Next-Gen Vakrangee Kendras, which serve as digital convenience stores offering multiple services.
- Enhancing operational infrastructure and technology.
Vakrangee’s asset-light, franchise-based business model is designed to cater to diverse stakeholder needs while driving inclusive growth across rural and urban India.
Shareholder Approval and Withdrawal of Previous Allotment
Vakrangee will hold an Extraordinary General Meeting (EGM) on January 15, 2025, to seek shareholder approval for the proposed fundraising. During the board meeting, the company also announced the withdrawal of an earlier in-principle application for allotment of 20 crore convertible warrants, which had been approved in October 2024. This decision indicates a strategic shift towards the current fundraising plan.
Market Reaction and Share Performance
Vakrangee shares have shown a positive reaction, closing 2.09% higher at ₹32.78 on December 21, 2024, compared to the previous close of ₹32.11. Key performance metrics include:
- Trading Volume: A total of 46.55 lakh shares were traded, with a turnover of ₹15.73 crore.
- Technical Indicators:
- RSI (Relative Strength Index): 70.5, signaling neutral trading conditions.
- Shares are trading above all major moving averages, including the 5-day, 10-day, 20-day, and 200-day averages, indicating bullish momentum.
Growth Potential and Company Strategy
Vakrangee’s growth strategy is centered on digital and financial inclusion:
- Next-Gen Vakrangee Kendras: These digital convenience stores cater to diverse needs, including banking, insurance, e-governance, e-commerce, and logistics services.
- Asset-Light Model: This model reduces operational risks while ensuring scalability.
- Franchise Network Expansion: The company aims to expand its franchisee base, providing greater access to underserved regions.
FAQs
What is Vakrangee’s fundraising plan?
Vakrangee plans to raise ₹980 crore by issuing 35 crore convertible warrants to non-promoter investors through preferential allotment.
When is the shareholder meeting scheduled?
The Extraordinary General Meeting (EGM) is scheduled for January 15, 2025.
What was the previous fundraising plan, and why was it withdrawn?
Vakrangee withdrew its earlier plan to allot 20 crore convertible warrants, approved in October 2024, to focus on the current fundraising initiative.
How did Vakrangee shares perform after the announcement?
Vakrangee shares closed 2.09% higher at ₹32.78, with a trading volume of 46.55 lakh shares on December 21, 2024.
What is the purpose of raising ₹980 crore?
The funds will be used to:
- Expand Next-Gen Vakrangee Kendras.
- Strengthen financial and operational capabilities.
- Support infrastructure and technology upgrades.
What are Vakrangee’s Next-Gen Kendras?
These are digital convenience stores offering banking, insurance, e-commerce, and logistics services to drive financial and digital inclusion.
What is the RSI of Vakrangee shares?
The RSI is 70.5, indicating neutral trading conditions.
Conclusion
Vakrangee’s decision to raise ₹980 crore through convertible warrants highlights its commitment to driving growth and inclusion. The move is expected to enhance its financial stability and operational capacity, positioning the company for long-term success. With its innovative business model and strategic focus, Vakrangee remains a key player in fostering financial and digital inclusion across India.
Disclaimer: This article is for informational purposes only and should not be considered financial advice.
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