Vakrangee shares to turn ex-date for demerger today; all you need to know

Shares of Vakrangee Ltd will turn ex-date for demerger on Thursday. The NCLT's Mumbai Benchhas approved the scheme of arrangement for demerger of e-governance & IT/ITES business (demerged undertaking) of Vakrangee Limited (‘Demerged Company’) into VL  EGovernance & IT Solutions Limited(‘Resulting Company’) and their respective shareholders vide its order dated May 19, 2023.  The scheme of arrangement for demerger became effective from May 26, 2023. 

Shareholders of Vakrangee will get one equity share each of VL EGovernance & IT Solutions Limited for 10 equity shares they hold when the latter gets listed on stock exchanges. 

The record date for the corporate action which is also today implies that the company will check its records to identify the eligible shareholders of Vakrangee Limited, who would be allotted shares by into VL EGovernance & IT Solutions Limited pursuant to the scheme of arrangement. 

In the previous session, Vakrangee stock closed in the red. The stock slipped to Rs 17.56 intraday against the previous close of Rs 18.17 on BSE.  Later, the stock ended 2.37% lower at Rs 17.74 on BSE. In a year, the stock has lost 28.61% and fallen 36% in 2023. Market cap of the firm stood at Rs 1879.58 crore. A total of 35.30 lakh shares of the firm changed hands, amounting to a turnover of Rs 6.29 crore on BSE.    

In terms of technicals, the relative strength index (RSI) of Vakrangee stands at 50.4, signaling the stock is neither oversold nor overbought. The stock has a one-year beta of 1, indicating average volatility during the period. Vakrangee shares stand higher than the 20 day and 50 day moving averages but lower than 5 day, 100 day and 200 day moving averages. 

The firm reported a weak set of March quarter earnings. It posted a 97.74% fall in profit to Rs 0.68 crore in Q4 against a profit of Rs 30.12 crore in the March quarter of the previous fiscal. Sales slipped 75.60% to Rs 50.94 crore in the March 2023 quarter against Rs 208.81 crore in Q4 of the previous fiscal. EBITDA slipped 88.36% to Rs 4.72 crore in the March 2023 quarter against Rs 40.56 crore in the March 2022 quarter.  

However, on a quarter-on-quarter basis, profit zoomed 94.29% from Rs 0.35 crore in the December quarter of the previous fiscal. Sales fell 80% from Rs 250.73 crore in the December 2022 quarter.   

On an annual basis, net profit crashed 99.09% to Rs 1 crore for the fiscal ended March 2023 against Rs 109.52 crore for the fiscal ended March 2022. Revenue declined 74.66% to Rs 197.30 crore in the March 2023 fiscal against Rs 778.69 crore for the fiscal ended March 2022.   

EBITDA slipped 88.18% to Rs 18.30 crore in the March 2023 quarter against Rs 154.78 crore in the March 2022 quarter.  

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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