Vakrangee shares rose 13% in early deals; here’s why

Shares of Vakrangee Limited rose 13% today after the technology company signed a binding term sheet with private equity investor Aaviskaar Capital to buy 48.5% equity stake for Rs 18.43 crore in the leading automated teller machines provider Vortex Engineering. Vakrangee stock zoomed 13.06% to Rs 18.60 against the previous close of Rs 16.45 on BSE. A total of 76.80 lakh shares of the firm changed hands, amounting to a turnover of Rs 13.52 crore on BSE. Market cap of the firm stood at Rs 1941.03 crore. 

In a year, the stock has lost 47.79% and fallen 30% in 2023. The stock hit its 52 week high of Rs 42.55 on September 13, 2022 and a 52 week low of Rs 13.70 on March 29, 2023.  

In terms of technicals, the relative strength index (RSI) of Vakrangee stands at 58.4, signaling the stock is neither oversold nor overbought. The stock has a one-year beta of 1.4, indicating high volatility during the period. Vakrangee shares are trading higher than the 5 day, 10 day, 20 day, 50 day 100 day and 150 day moving averages but lower than the 200 day moving averages. 

Vortex is one of the leading providers of automated teller machines (ATMs), and so far has shipped 10,000 plus ATMs across India, Africa and South Asia and Software products to complement ATM hardware. This acquisition will help Vakrangee achieve backward integration. 

The transaction is expected to be completed within 30 days from the term sheet date. 

Vakrangee will acquire 3,65,575 equity shares from Aavishkaar India Micro Venture Capital Fund, Aavishkaar India II Company Limited, Aavishkaar Venture Management Services Private Limited representing 48.5 percent of the equity stake in Vortex. 

“This is a strategic investment which will help the company to have a complete backward integration in place and thereby unlocking future growth opportunities, leverage the cost synergies and technology know-how. Our move into this acquisition is yet another validation to achieve our set targets of 3 lakh+ outlets along with Minimum 15,000+ ATMs by 2030," said Dinesh Nandwana, Managing Director & Group CEO of Vakrangee. 

Vakrangee Limited is a technology company focused on financial, social and digital inclusion of its customers. It operates on an asset-light, franchisee-based business model to cater to the needs of its stakeholders. It assisted digital convenience stores, Next-Gen Vakrangee Kendras offers solutions for multiple products and services.   

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