Vakrangee gains 28% in 2 days after rolling back amalgamation scheme

The board withdrew the proposed amalgamation of Vakrangee Logistics and Vakrangee Finserve with Vakrangee Ltd

Shares of Vakrangee moved higher by 14 per cent to Rs 39.70 on the BSE in the intra-day trade on Friday, surging 28 per cent in the past two trading days, after its board approved the withdrew amalgamation scheme for two wholly-owned subsidiaries due to "substantial changes in the business environment".

The company had, in March 2020, filed Scheme Application with National Company Law Tribunal, Mumbai (NCLT) which is presently pending with NCLT to seek appropriate directions.

"Since then, there have been substantial changes in business environment in the last few months and the management of the Company is of the opinion that, considering the present scenario, it would not be prudent to proceed with proposed amalgamation of Vakrangee Logistics Private Limited and Vakrangee Finserve Limited with Vakrangee Limited," Vakrangee said in a regulatory filing. READ HERE

Hence, we would like to update that the board has, on November 25, 2020, approved the withdrawal of the scheme, subject to the approval of NCLT, it said.

Vakrangee Logistics is building for its alliance partners, unparalleled last-mile delivery capabilities and thus expanding their reach to unserviceable pin codes, where the logistics challenges are the maximum for traditional logistics companies. The key services offered by Vakrangee Logistics include forward delivery, reverse pick-ups and courier booking.

Vakrangee Finserve focuses on working as business correspondent for various Banks under the Business Correspondent (BC) Model of Reserve Bank of India (2006) in the area of Financial Inclusion. The company has already signed agreements with various PSU Banks and their rural regional banks for carrying out BC services for these banks in identified rural, semi-urban and urban areas. The services include bank activities such as opening of bank accounts, deposits, withdrawals and remittances, etc.

At 01:34 pm, Vakrangee was trading 11 per cent higher at Rs 38.55 on the BSE, as against a 0.28-per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped an over three-fold with a combined 12.8 million shares having changed hands on the NSE and BSE till the time of writing of this report.