There are several reasons behind the Rising Value of Vakrangee Stock. Vakrangee’s voyage aptly illustrates this. The organization offers a variety of services, mostly through its extensive network of Vakrangee Kendras throughout India, including financial inclusion, e-governance, and logistical solutions.
Its stock had a severe meltdown at the beginning of 2018, falling by about 95% and wiping off a large amount of investor money. Investors were left trapped in a protracted decline because Vakrangee unable to recover, in contrast to other equities that often rebound.
However, there has been a change recently. Investors took notice when the share price of Vakrangee surged by 70% in the last month. Even while it hasn’t yet reached its 2018 apex, this comeback begs the issue of what’s behind this newfound momentum.
Plans for Fundraising: Since the firm released a notification on September 17, 2024, the share price of Vakrangee has increased. The corporation notified its shareholders in the notice about intentions to raise funds that would be considered at the next board meeting.On September 24, 2024, Vakrangee carried out their fundraising strategy as scheduled. The business said that the non-promoter category will get a preferred allocation of 2 billion (bn) convertible warrants.The allocation of these warrants is subject to the requisite approvals from regulatory agencies and shareholders, and the price will be set in accordance with SEBI norms.Furthermore, Vakrangee raised the amount of its authorized share capital from Rs 12.5 billion to Rs 15 billion. With this modification, the corporation will have greater financial flexibility going forward as it may issue additional stock shares.These kinds of fundraising initiatives are seen favorably by the market. The issuance of convertible warrants by a corporation is an indication of potential for expansion.
New Strategic collaboration: Vakrangee and Star Health & Allied Insurance, one of the biggest retail health insurance providers in India, established a new corporate collaboration on September 17, 2024.The goal of this partnership is to increase access to health insurance services throughout the more than 21,900 Kendras in Vakrangee’s network. Vakrangee will provide its clients with a range of health insurance products as a result of this partnership.Star Health is well-known for having a significant position in the health insurance market, having been founded in 2006. It provides items designed for older persons, women, and children, as well as specific programs for serious illnesses including diabetes, cancer, and heart disease.A wider spectrum of people will be able to obtain Star Health’s insurance solutions thanks to this relationship with Vakrangee. Affordable health coverage choices, such as critical illness plans and individual and family health insurance, will be provided to customers.Given that investors anticipate possible growth prospects from Vakrangee’s increased healthcare products, this strategic change might have a beneficial effect on the company’s share price.
What’s ahead: Vakrangee plans to grow significantly over the next three years, with a particular emphasis on developing its network of convenience stores across India, both real and virtual.By making sure that its services are accessible even in the most remote locations, Vakrangee strives to fulfill every single unmet consumer. It is anticipated that this expansion would boost the company’s market share and income.Additionally, Vakrangee is profiting from the rising demand for financial automation systems and ATMs. Vakrangee is putting itself in a position to profit from this cycle as India’s banking industry plans to replace over 80,000 ATMs and install over 20,000 new ones over the next two years.
The company intends to capitalize on worldwide trends, such the switch from Windows 7 to Windows 10 devices, to expand its business further. It already has an order book with over 3,000 ATMs.
Vakrangee’s ATM monitoring tool, “Perfo,” is growing at a 100% CAGR over the previous three years, indicating tremendous growth in the software space. The company’s competitiveness in the ATM and banking automation business, both in India and beyond, is increased by this product in conjunction with Vakrangee’s IP portfolio, which consists of nine patents.
Vakrangee has set high financial goals for the future. By FY30, it hopes to generate income of Rs 82 billion, up from Rs 1.9 billion in FY23.
It also intends to achieve a PAT margin of 10-12%, a significant improvement over its current 0.5%. By FY30, the company’s gross transaction value (GTV) is anticipated to have increased significantly to US$ 150 billion.
By implementing these tactics, Vakrangee hopes to gain a bigger portion of the quickly changing financial services industry and positions itself for robust development in both its physical and digital operations.
How the Share Price of Vakrangee Has Been Lately: Over the last five days, there has been a 43% increase in the share price of Vakrangee. In the last month, it is up 70%.
Its share price has up 82% so far in 2024, and it has increased 104% in the past year.
On September 30, 2024, the stock reached its 52-week high of Rs 36.2, and on October 10, 2023, it reached its 52-week low of Rs 16.2.
About Vakrangee: Vakrangee Limited was founded as Vakrangee Investment & Consultancy Limited on May 28, 1990, and registered as a Private Limited business. The firm was renamed as Vakrangee Investment on April 3, 1992, and Vakrangee in 1995.
The firm has grown to become one of the biggest last-mile delivery platforms in India, with a presence across the country and a digital and physical ecosystem in place.The firm provides underserved and unserved rural, semi-urban, and metropolitan areas with real-time banking and financial services, ATM insurance, e-governance, ecommerce (including healthcare services), and logistical services.
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