Vakrangee Ltd, a technology company focused on financial and digital inclusion, is set to witness a significant corporate action as its shares turn ex-date for demerger. The National Company Law Tribunal’s Mumbai Bench has approved the scheme of arrangement for the demerger of Vakrangee’s e-governance and IT/ITES business into VL EGovernance & IT Solutions Limited. Shareholders of Vakrangee will receive one equity share of VL EGovernance & IT Solutions Limited for every ten equity shares they hold. Here’s an overview of the demerger and its implications.
The demerger scheme received approval from the NCLT on May 19, 2023, and became effective from May 26, 2023. Shareholders of Vakrangee will be eligible to receive shares of VL EGovernance & IT Solutions Limited once the latter gets listed on stock exchanges.
The record date for this corporate action is today, which means the company will identify the eligible shareholders of Vakrangee Limited who will be allotted shares in VL EGovernance & IT Solutions Limited as per the scheme of arrangement.
In the previous trading session, Vakrangee’s stock closed lower at Rs 17.74 on the BSE. The stock has shown higher levels than the 20-day and 50-day moving averages but remains below the 5-day, 100-day, and 200-day moving averages. Over the course of one year, the stock has witnessed a decline of 28.61% and has fallen by 36% in 2023. The market capitalization of the firm currently stands at Rs 1879.58 crore.
In terms of technical indicators, the relative strength index (RSI) of Vakrangee is at 50.4, indicating that the stock is neither oversold nor overbought. The one-year beta of 1 suggests average volatility during the period. While the stock is trading higher than the 20-day and 50-day moving averages, it remains below the 5-day, 100-day, and 200-day moving averages.
Vakrangee recently reported weak financial results for the March quarter. The company witnessed a significant decline in profit, sales, and EBITDA compared to the previous fiscal year. However, on a quarter-on-quarter basis, the profit saw an increase, while sales declined. The company’s annual net profit and revenue also experienced a significant decline for the fiscal year ended March 2023.
Vakrangee operates on an asset-light, franchisee-based business model, primarily focused on financial and digital inclusion. Its Next-Gen Vakrangee Kendras offer solutions for various products and services through digital convenience stores.
The demerger of Vakrangee’s e-governance and IT/ITES business marks a significant development for the company and its shareholders. As the demerger progresses, shareholders will receive shares of VL EGovernance & IT Solutions Limited, and the company’s performance will be closely watched in the coming days.