Vakrangee to demerge its E-Governance and IT/ITES division into separate entity

Post demerger to be recognized as a pure retail consumer centric business

The Board of Directors of Vakrangee in its meeting held today, approved the demerger of its E-Governance and IT/ITES division into a separate entity.

In June 2021 the Board of Directors of Vakrangee had approved Demerger of its digital Division. However, The Board of Directors have now after due deliberations and detailed discussions, taking into consideration the best interest of all its stakeholders, have finally decided to demerge its E-Governance and IT/ITES division. Whereas the digital division will continue to be part of the current listed entity Vakrangee.

Vakrangee Kendra Business is Retail centric Consumer facing business whereby we are building the last mile physical distribution platform as well as a B2C E-Commerce focussed Mobile Super app Digital platform. Further, Vakrangee Kendra business (Physical as well as Digital) is an Asset Light, High return on capital business and thereby will get the proper representation post the Demerger.

E-Governance & IT/ITES Business is a capital intensive B2B business. It is Capex Heavy as well as Working capital Intensive. The E-Governance & IT/ITES Business division requires different skill sets and focused approach towards time bound project execution capabilities as well as dedicated efforts on collection of Debtors, Vendor management and trading of IT equipment's.

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