Shares of this smallcap company jumped 4 percent in Monday’s trading session after entering into a Share Purchase Agreement with Tata Capital Innovations Fund.
With a market capitalization of Rs. 2,429 crores, the shares of Vakrangee (NS:VAKR) Ltd started Monday’s trading session on a flatter note at Rs. 22.80 compared to its previous close of Rs. 22.20. During the trading session, the shares hit a high of Rs. 23.20, gaining around 4 percent and are currently trading at Rs. 22.95 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had entered into a Share Purchase Agreement for the acquisition of 18.5 percent equity share capital worth Rs. 7.03 crores of Vortex Engineering Private Limited from Tata Capital Innovations Fund (Seller).
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Vortex Engineering Private Limited (Vortex) is one of the leading providers of Automated Teller Machines (ATMs), manufacturing and marketing the world’s most cost-effective ATMs using patented technology. Further, the company has 9 patents in the field of ATM and cash Dispensers (Make in India – Atma Nirbhar Bharat).
This is a strategic investment that will help the company to have a complete backward integration in place for ATM Business and thereby unlocking future growth opportunities, leveraging the cost synergies and technology know-how.
Earlier, the company completed the acquisition of 8.8 percent equity share capital of Vortex Engineering Private Limited from the International Finance Corporation (IFC) (“Seller”). Moreover, the company is in the process of acquiring another 85 percent equity share capital of Vortex Engineering Private Limited from other shareholders of the company.
Coming onto the company’s financial statements, the revenue jumped by around 5 percent from Rs. 51.56 crores during the December quarter to Rs. 53.89 crores during the March quarter. In addition, the net profits surged by 77 percent from Rs. 1.24 crores to Rs. 2.19 crores during the same period.
Additionally, the company has set an ambitious goal to reach more than 3 lakh outlets along with a minimum of 15,000 ATMs. With this, the company has a plan to achieve a revenue target of USD 1 Billion by 2030 along with a Gross Transaction Value of more than USD 150 Billion.
Headquartered in Maharashtra, Vakrangee Ltd was incorporated in 1990. The company delivers real-time banking & financial services, ATM, insurance, e-governance, e-commerce (including healthcare services), and logistics services to unserved and underserved rural, semi-urban and urban markets in India.
Written By Vaibhav Patil
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