LIC-owned penny stock: Vakrangee shares hit 5% upper circuit for 2nd straight session; here’s why

Shares of Vakrangee, a LIC-backed penny stock, were locked in their 5 percent upper circuit at ₹16.71 on Friday, February 14, following the Reserve Bank of India’s (RBI) decision to renew its authorisation for White Label ATMs. This marked the second consecutive session that the stock hit its upper circuit.

In an exchange filing on Wednesday, February 12, Vakrangee announced that the RBI had extended the validity of its authorisation to establish, own, and operate White Label ATMs (WLAs) in India until March 31, 2026.

Commenting on the development, Vakrangee’s Managing Director, Vedant Nandwana, stated, “We are happy to announce the renewal of authorisation for our White Label ATMs business by the RBI. The ATM service remains a crucial offering under our Vakrangee Kendra business model, enhancing customer confidence, especially in rural and semi-urban regions.”

As of January 31, 2025, the company operates 6,035 White Label ATMs, with 76 percent of these located in Tier-4 to Tier-6 regions. Additionally, Vakrangee has a network of 22,395 Vakrangee Kendra outlets, with 81 percent of them situated in Tier-4 to Tier-6 locations.

In FY24, the company unveiled “VISION 2030,” outlining aggressive long-term expansion goals. Vakrangee aims to scale its presence to over 3 lakh outlets, increase its ATM count to at least 15,000, and target a revenue milestone of $1 billion alongside a gross transaction value (GTV) of $150 billion by 2030.

Shareholding Pattern

Vakrangee has garnered interest from large institutional investors, with insurance giant LIC holding a 4.41 percent stake in the company, according to the latest shareholding data. As of the December quarter, retail investors held the majority share at 51 percent, while the promoter group maintained a 41.7 percent stake.

Stock Performance

Over the past year, the penny stock has lost 38 percent of its value. However, it has climbed more than 10 percent in just two sessions, including today’s rally. Despite this short-term surge, the stock has witnessed a significant downturn, declining 31 percent in February following a 30 percent drop in January 2025.

Currently trading at ₹16.71, Vakrangee remains over 56 percent below its 52-week high of ₹38.17, recorded in January 2025. On the upside, it has recovered 16 percent from its 52-week low of ₹14.42, which was hit in the previous session.

Financial Performance

For the third quarter of FY24 (Q3FY24), Vakrangee reported a total income of ₹67.88 crore, marking a 31.3 percent year-on-year (YoY) growth. The company’s EBITDA stood at ₹5.48 crore, while profit after tax (PAT) came in at ₹1.04 crore, compared to ₹1.24 crore in the corresponding period last year.

Additionally, the company highlighted that its quarterly Gross Transaction Value (GTV) crossed ₹13,699.8 crore, with total transactions exceeding 3.2 crore.

About Vakrangee

Established in 1990, Vakrangee has evolved into one of India’s largest last-mile distribution networks, integrating physical and digital ecosystems to cater to underserved rural, semi-urban, and urban markets. The company offers a diverse range of services, including banking, insurance, ATMs, financial services, assisted e-commerce, e-governance, healthcare, and logistics solutions through its Vakrangee Kendra outlets.

With its renewed WLA authorisation and ambitious expansion roadmap, Vakrangee remains focused on strengthening its footprint and enhancing accessibility to financial and digital services across India.