Vakrangee shares rebound 7% as stock trades ex-demerger

Shares of Vakrangee rebounded from the early cuts during the trading session on Thursday and surged 7 per cent from the day's low as the stock traded ex-demerger. The company had fixed June 15, 2023 (Thursday) as the record date to determine the eligibility for the equity shareholders of the demerged entity.

The Mumbai bench of the National Company Law Tribunal (NCLT) had approved the scheme of arrangement for the demerger of E-governance and IT & related business on May 19, 2023, which was made effective on May 26, 2023. The demerged entity has been named 'VL E-Governance & IT Solutions' by Vakrangee.

Investors having the delivery of Vakrangee's equity shares as of Thursday are eligible for allotment of equity shares of VL E-Governance & IT Solutions in a 10:1 ratio. It means one equity share with a face value of Rs 10 each of the VL E-Governance & IT Solutions will be allotted for every 10 equity shares with a face value of Re 1 each held in Vakrangee.

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Following the adjustment, shares of Vakrangee rebounded about 7 per cent from the day's low at Rs 15.49 to Rs 16.54 on Thursday. The scrip was locked in the buyer's circuit as it rose 5 per cent from the previous close at Rs 15.75 on Wednesday. The company was commanding a total market capitalization of more than Rs 1,750 crore.

For the quarter ended on March 31, 2023, Vakrangee reported 98 per cent fall in the net profit at 0.68 crore, while its revenue dropped 76 per cent to Rs 50.94 crore. The company reported a net profit of Rs 1 crore for the entire year 2022-23, falling over 99 per cent compared to the previous fiscal. Its revenue crashed 75 per  cent to Rs 197.30 crore.

Incorporated in 1990, Vakrangee is a technology-driven company centered around building last-mile retail outlets to deliver BFSI and other services to the unserved and underserved rural, semi-urban, and urban population of the country. It assisted digital convenience stores, Next-Gen Vakrangee Kendras offered solutions for multiple products and services.  

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