MUMBAI, February 26, 2018 /PRNewswire/ --
In a major development which can be termed as a sigh of relief for the shareholders of IT major, Vakrangee Limited, market watchdog Securities and Exchange Board of India (SEBI) has issued an order against Mumbai-based Abhirati Trading but the order did not hold Vakrangee Limited responsible for any misdeed in the ongoing alleged campaign against the IT company. February 21, 2018 in its order SEBI levied a penalty of Rs 9.5 lacs against Abhirati, an investor. Abhirati has been charged for 'disclosure lapses'.
The market regulator upon suspicion of violation of various provisions of securities laws conducted investigation in the shares of Vakrangee which has been witnessing a roller-coaster ride in last one fortnight or so.
SEBI has observed that the shareholding of Abhirati in Vakarangee got reduced on May 28, 2013 by 2.31% and by 2.07% on September 4, 2013. "Thus, upon change of more than 2 per cent in its shareholding in the company (Vakrangee), the noticee (Abhirati) ought to have disclosed in terms of ... PIT (Prohibition of Insider Trading) and SAST (Substantial Acquisition of Shares and Takeovers)," SEBI noted.
It may be recalled that Vakrangee share price tumbled earlier this month on certain media reports of SEBI initiating investigation for alleged price and volume manipulation. However, the company management clarified such stories are 'baseless' and purely 'speculative'.
Vakrangee share price declined 48% to Rs 263.10 on February 1, 2018 from Rs 505.32 on January 25, 2018. It lost market capitalisation of Rs 256.50 billion during the same period. On Friday, Vakrangee share priced at Rs 189, is stuck on lower circuit on BSE.
Strong speculative campaigns were carried out by certain vested interest-holders earlier that Vakrangee had come under SEBI investigation for alleged price and volume manipulation of its own scrip at Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). On the contrary, the SEBI investigation revealed no such manipulation in the Vakrangee share price or volume. "Investigation did not reveal any specific disproportionate gains or unfair advantage made by the noticee or specific loss suffered by the investors. No past default against the Noticees was revealed in the investigation report," SEBI order added.
Incorporated in 1990, Vakrangee is the unique technology driven company focused on building India's largest network of last-mile retail outlets to deliver real-time banking, insurance, e-governance, e-commerce and logistics services to the unserved and underserved rural, semi-urban and urban markets. These retail outlets are called as 'Vakrangee Kendra which act as the 'One-stop shop' for availing various services and products. Vakrangee is currently operating more than 44,200 'Vakrangee Kendra' outlets across India. The company has plans to setup and manage a total of 75,000 'Vakrangee Kendra' outlets across India by 2020 and covering the presence in all Postal codes of the country.
Vakrangee has been at the forefront in financial inclusion space in India. It has signed 'Common BC' and 'National BC' agreements with various banks for offering real-time banking to unserved and underserved urban population. Banking at 'Vakrangee Kendra' outlets is a unique experience with disruptive technology like APS, e-KYC, inter-operability and real-time transactions.
In addition to banking 'Vakrangee Kendra' outlets also provide insurance products, e-governance services and e-commerce products and services. The company also offers assisted e-commerce services offering strong platform for buying/collecting/delivering large variety of products; alliance with Netmeds Marketplace Limited to offer medicines and other health products; the company also has alliance with redBus for offering bus ticketing services and with Mahindra eMarket Limited, a subsidiary of M&M for promoting and booking automobile products using the last-mile distribution network of Vakrangee Kendra outlets.
The company has alliance with Indian Railway Catering and Tourism Corporation Limited (IRCTC) for offering Railway E-Tickets booking through Vakrangee Kendras and also has alliance with IndusInd Bank Limited for Bharat Bill Payment System platform to deliver a wide range of bill payment services from Vakrangee Kendra outlets. The company also intends to provide GST (Goods and Services Tax) Registration, Filing of Returns, Payment and other value-added services through Vakrangee Kendra Outlets.
Media Contact :
Manoj Singh Gautam
Chief Strategy Officer
The Strategist Media