LIC-owned penny stock: Vakrangee shares hit 5% upper circuit. Do you own?

Shares of Vakrangee, one of India’s largest last-mile distribution platforms, surged 4.95% in intraday trade on February 13 to reach ₹15.92 per share, its upper price band, after the company announced that the Reserve Bank of India (RBI) had renewed its authorisation for White Label ATMs.

In an exchange filing on Wednesday, the company stated that the RBI has extended the validity of its authorisation to set up, own, and operate White Label ATMs (WLAs) in India until March 31, 2026.

Commenting on this renewal, Vedant Nandwana, Managing Director, Vakrangee said, “We are happy to announce the Renewal of Authorization of our White Label ATMs Business by RBI. ATM is one of the key services offered in our Vakrangee Kendra Business Model and it gives confidence to our customers especially in Rural and Semi Urban centres.”

As of January 31, 2025, Vakrangee operates 6,035 White Label ATMs, with 76% of these outlets located in Tier-4 to Tier-6 regions. The company also has 22,395 Vakrangee Kendra outlets, of which 81% are in Tier-4 to Tier-6 locations.

Vakrangee Kendras provide a comprehensive range of services, including banking, insurance, ATMs, financial services, and assisted e-commerce solutions. Founded in 1990, Vakrangee has grown into one of India’s largest last-mile distribution platforms, integrating both physical and digital ecosystems with a pan-India presence.

The company delivers real-time banking and financial services, ATMs, insurance, e-governance, e-commerce (including healthcare services), and logistics solutions to underserved rural, semi-urban, and urban markets.

In FY24, the company launched “VISION 2030,” outlining ambitious long-term goals, including expanding to over 3 lakh outlets, a minimum of 15,000 ATMs, and targeting $1 billion in revenue along with $150 billion in gross transaction value (GTV) by 2030.

In the third quarter of FY24 (Q3FY24), the company reported a total income of ₹67.88 crore, reflecting a year-on-year (YoY) growth of 31.3%, while EBITDA stood at ₹5.48 crore. Profit after tax (PAT) surged 76% quarter-on-quarter (QoQ) to ₹1.04 crore.

Additionally, the company’s Q3 earnings filing reported that quarterly Gross Transaction Value (GTV) crossed ₹13,699.8 crore, while the number of transactions exceeded 3.2 crore.

LIC holds 4.4% stake in the company

India’s biggest institutional investor and insurance behemoth LIC holds a 4.41% stake in the company, according to shareholding data filed with the BSE. As of the end of the December quarter, retail investors held the majority stake at 51%, while the promoter group owned 41.7%.

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