Vakrangee declines for third straight day; stock tanks 20%

The stock locked in lower circuit of 20% at Rs 336, falling 33% in past three trading days from Rs 505 on January 25, 2018

Shares of Vakrangee were locked in lower circuit of 20% at Rs 336, extending their past two days decline on the BSE, on heavy volumes.

In the past three trading days, the stock has tanked 33% from Rs 505 on Thursday, January 25, 2018, as compared to a marginal 0.36% decline in the S&P BSE Sensex.

The trading volumes on the counter more than doubled with a combined 19.64 million equity shares representing 1.9% of total equity of Vakrangee changed hands on NSE and BSE till 01:10 PM. There were pending sell orders for 747,177 shares on both the exchanges.

According to media reports, Vakrangee has come under Securities Exchange Board of India’s (SEBI) investigation for alleged price and volume manipulation of its own scrip at BSE and the National Stock Exchange (NSE). READ THE REPORT HERE

In the past two years, the stock has had a good run and gained a huge 677% - from Rs 65 on January 23, 2015 to Rs 505 on January 25, 2018. By comparison, the benchmark Sensex gained 23% during the same period.

As of December 31, 2017, the promoters held 41.74% stake in Vakrangee. Foreign portfolio investors (FPI) have 26.23% holding, followed by individual shareholders (8.64%) and Life Insurance Corporation of India (6.58%), while the remaining 16.61% stake are with others.

Vakrangee is the unique technology driven company focused on building India's largest network of last-mile retail outlets to deliver real-time banking, insurance, e-governance, e-commerce and logistics services to the unserved & underserved rural, semi-urban and urban markets.

The company is the country’s first-largest enrolment agency empanelled with the Unique Identification Authority of India (UIDAI), permitting pan-India enrolment of Aadhaar Card, the 12-digit individual identification number issued by the Government of India.