Share price of Vakrangee rallies amid renewed White Label ATM authorisation from RBI

Vakrangee, a penny stock backed by LIC, surged to ₹16.71 on February 14, locking in their 5% upper circuit for the second consecutive session. The rally follows the Reserve Bank of India's (RBI) renewal of the company's White Label ATM (WLA) authorisation until March 31, 2026.

RBI Authorisation and Company Statement

Vakrangee, in a stock exchange filing dated February 12, announced the RBI's decision to extend its WLA authorisation. This extension enables the company to establish, own, and operate ATMs across India.

Vedant Nandwana, Managing Director of Vakrangee, commented, "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."

Current Operations and Vision 2030

Vakrangee operates 6,035 White Label ATMs, 76% of which are located in Tier-4 to Tier-6 regions. It also has a robust network of 22,395 Vakrangee Kendra outlets, 81% of which are situated in rural and semi-urban areas.

In FY24, the company unveiled its "VISION 2030," targeting ambitious growth milestones, including:

• Expanding to 3 lakh outlets.
• Increasing the number of ATMs to 15,000.
• Achieving $1 billion in revenue and $150 billion in Gross Transaction Value (GTV).

Shareholding Pattern

Vakrangee has attracted notable institutional investors, with LIC holding a 4.41% stake in the company as per December 2024 data. Retail investors own 51% of the company, while the promoter group retains 41.7%.

Stock Performance

Vakrangee shares have experienced a turbulent journey over the past year, losing 38% of their value. Despite the recent surge of over 10% in two sessions, the stock remains down by 31% in February and is trading 56% below its 52-week high of ₹38.17, as on January 2025. The stock, however, has made a recovery of 16% from its 52-week low of ₹14.42.

Financial Performance

In Q3FY24, Vakrangee reported:

• Total income of ₹67.88 crore, up 31.3% year-on-year.
• EBITDA of ₹5.48 crore.
• Profit after tax (PAT) of ₹1.04 crore, compared to ₹1.24 crore in Q3FY23.

The company also highlighted that its quarterly Gross Transaction Value (GTV) exceeded ₹13,699.8 crore, with over 3.2 crore transactions completed during the period.

Vakrangee Company Details

Vakrangee, founded in 1990, has grown into one of India's largest last-mile distribution networks, providing essential services to underserved areas. Through its Vakrangee Kendra outlets, it offers banking, insurance, ATMs, financial services, assisted e-commerce, e-governance, healthcare, and logistics.

Vakrangee is well-positioned to expand its reach and improve access to digital and financial services throughout India with the recently renewed WLA authorization and its Vision 2030 plan.