Investors who have taken delivery of Vakrangee’s equity shares as of Thursday can get 10 equity shares of VL E-Governance & IT Solutions for every one Vakrangee share they have.
Shares of Vakrangee went down early in Thursday’s trading session, but then they went back up and jumped 7% from the day’s low to the day’s high. This was because the stock was trading ex-demerger. The company had set Thursday, June 15, 2023 as the record date for figuring out who can be a stock shareholder of the demerged business.
The Mumbai bench of the National Company Law Tribunal (NCLT) accepted the plan of arrangement for the demerger of E-governance and IT & related business on May 19, 2023, and it went into effect on May 26, 2023. Vakrangee has called the new company “VL E-Governance & IT Solutions.”
Investors who have taken delivery of Vakrangee’s shares as of Thursday are qualified for a 10:1 allocation of VL E-Governance & IT Solutions shares. It means that for every 10 equity shares with a face value of Rs 1 that are kept in Vakrangee, one equity share with a face value of Rs 10 will be given.
After the change, shares of Vakrangee went up by about 7%, from Rs 15.49, which was the day’s low, to Rs 16.54, which was the day’s high. The share was stuck in the buyer’s circuit on Wednesday, when it went up by 5% from the previous close to Rs 15.75. The value of the company on the stock market was more than Rs 1,750 crore.
For the quarter that ended on March 31, 2023, Vakrangee’s net profit fell 98% to Rs 0.68 crore, and its sales fell 76% to Rs 50.94 crore. The company’s net profit for the whole year of 2022-23 was Rs 1 crore, which was down over 98% from the previous period. Its income went down 75%, to Rs 197.30 crore.
Vakrangee is a technology-driven business that started in 1990. Its main goal is to build “last-mile retail outlets” to provide BFSI and other services to people in rural, semi-urban, and urban areas of the country who don’t have access to them. Next-Gen Vakrangee Kendras helped digital grocery shops by providing solutions for many different goods and services.