Small Cap Stock Okays Preferential Allotment of 35,00,00,000 Convertible Warrants

Vakrangee is one of the largest multi-service retail networks based on franchisees. By offering BFSI, ATM, E-Commerce, and Logistics Services, the firm provides a wide range of services across several industries. The shares of Vakrangee Limited, a small-cap company, are expected to remain in focus in the upcoming session because the Board of Directors approved issuing and allocating up to 35,00,00,000 convertible warrants on a preferential basis to non-promoters in order to raise additional capital for the company.

A total of Rs. 980,00,00,000 will be provided to non-promoters in the form of up to 35,00,00,000 company warrants, each of which will be convertible into or exchangeable into an equivalent number of fully paid-up equity shares with a face value of Re. 1/-each at a premium of Rs. 27/-each.

The company's board also authorised the withdrawal of the in-principle application that the members of the company had submitted to BSE Limited and the National Stock Exchange of India Limited on October 27, 2024, for the allocation of 20,00,00,000 convertible warrants to the non-promoter category.

In order to obtain the required consent from the company's shareholders for the preferential issuance of convertible warrants, Vakrangee Limited notified stock exchanges that the company's Notice of Extra Ordinary General Meeting (EGM) is set for Wednesday, January 15, 2025 at 11.30 a.m.

Recently, Canara Bank and Vakrangee Limited (VL) joined together as Corporate Business Correspondents (CBC) to offer banking services through the Vakrangee Kendra networks. This partnership will broaden the company's geographic reach, ensuring efficient delivery of supported financial services and offering easy access to a range of banking solutions in the most remote and underserved regions. Through this collaboration, Vakrangee's extensive network of Kendras will provide a comprehensive range of financial services to underserved and unbanked persons in the bank's East Zone.

In terms of financial matters, Vakrangee's net profit increased 64.29% to Rs 0.69 crore in the September 2024 quarter compared to Rs 0.42 crore in the September 2023 quarter. Compared to Q2FY24, when sales were Rs 51.54 crore, sales in the quarter ending in September 2024 climbed 26.60% to Rs 65.25 crore.

With a market valuation of Rs 3.55KCr, Vakrangee's shares closed Friday's trading session on the NSE 2.24% higher at Rs 32.80 a share.