VAKRANGEE LIMITED
Company Update
November 28,
2018, Mumbai:
Update on SEBI Investigation
On trading activities
About Vakrangee Limited:
Vakrangee Limited is a
unique technology driven
company focused on
building India's largest network of
last-mile retail outlets to deliver real-time Banking & Financial Services,
ATM, Insurance, e-Governance,
e-Commerce and logistics
services to the
unserved rural, semi-urban
and urban markets.
Its Assisted Digital
Convenience stores, called as
“Vakrangee Kendras”, act as the “One-stop Shop” for availing various services
and products. Vakrangee
currently operates more than 45,000 “Vakrangee Kendra” outlets across
India.
The Company has been at
the forefront in the financial inclusion space in India. It has signed the
“Common BC” and “National BC” agreements with various public sector banks for
offering real-time banking to the unserved and
underserved rurban population in
India.
Under a strategic
initiative, the Company is upgrading the existing Vakrangee Kendra outlets into
the Next Gen format. These Kendras boast
of a modern
and standardized format
with a uniform
look-and-feel in all
the outlets and is aimed towards building consistent service levels and
uniform consumer experience. The model
also embodies technological
advancements, including mandatory
ATMs that enable
the ease of
financial transactions; centralized monitoring with the help of CCTV
Cameras which would provide remote assistance to these pan-India Kendras
Securities &
Exchange Board of
India (SEBI), had conducted an investigation into the trading activities
of certain entities in the scrip of Vakrangee Limited.
No
findings or instance of any stock manipulation by Promoter or Promoter group
entities.
There were
no findings or instance of any
stock manipulation by Promoter or Promoter group entities.
·
There
have been rumours and
various media reports and articles over
the past few months about the company’s promoters being under SEBI’s scrutiny on
charges of stock
manipulation. Latest development
indicates that the rumours were totally baseless .
·
Company promoters have also received a
clean chit from the office of economic offences wing (EOW).
·
A complaint was filed with the office of
Economic Offences Wing (EOW)
against the Company
and its Promoter/
Managing Director &
CEO Mr. Dinesh
Nandwana relating to price/
volume manipulation.
·
EOW
had conducted an
enquiry. Company had
provided all the
satisfactory replies and
supporting documents.
·
Upon
completion of their
investigation, the office
of EOW have communicated to the Company that they have
not found any substance in the
complaint and hence closing the enquiry,
thereby giving clean chit to the Company.
·
During
the SEBI investigation it
was observed that
promoter entities viz,
NJD Capital Private Limited
along with Vakrangee
Holdings Private Limited,
Mr. Dinesh Nandwana
and Dinesh Nandwana (HUF)
(being members of
promoter and promoter
group), had increased
their shareholding from 38.71% of share capital to 41.61% of share
capital between June 2015 to August 2015.
·
They
were required to
make disclosures related
to the above
transactions to the
company / stock exchanges
pursuant to the
provisions of SEBI
(PIT) Regulations, 2015
and SEBI (SAST) Regulations, 2011
within the time
frame specified thereunder.
·
It
was observed that
there was a slight delay in intimating the same to the
company and to the stock exchanges. This matter was reviewed
by SEBI and it was
intimated to the
promoters to be
careful in future
to avoid recurrence of such
instances.
·
Mr. Dinesh Nandwana, MD & CEO,
Vakrangee Limited,stated , “We have always maintained that these rumour-based
media articles relating to stock manipulation by Promoter or Promoter entities
are false and completely baseless. We are proud to state that we have been
proven right today,as observed by the outcome of the investigations from EOW
and SEBI.
·
We continue to remain positive and
confident with respect to our business model. Meanwhile, we have adopted a
strategic decision to upgrade all our existing Vakrangee Kendra stores into a
standardised Next Gen store format.
·
About 3,500-4,000 Vakrangee Kendra outlets
will be upgraded as per the Next Gen model during the quarter-ended December
31, 2018, and these are currently in advanced stages of completion. These
outlets are spread across 380 districts and 2,548 postal codes of India , of
which over 2,500 - 3,000 outlets belong to Tier 5 & 6 cities.
·
Simultaneously, the process of upgrading
the remaining 41,000 outlets into Next Gen Vakrangee Kendras is already
underway, and these will get upgraded before the end of CY 2019.”
·
Business is running well. Nobody has
resigned.
·
No impact of market share prices on the
inside working
·
10 Business partners have been added who
trust the company
·
L&S has been hired to revamp the
Kendras and their suggestions are being implemented.
·
All outlets will have same design, make and
feel.
·
Market cap steep fall victims – All - includes Promoter group
·
·
Mumbai Mirror news article spread some rumours – non commercial news
paper - Now these rumours and charges are proved false
·
Gold standard kendra will have upto (500 sft) and silver kendras upto (200 sft)
·
ATM – EXPENSES for others : (1) RENT (2)
SECURITY-WATCHMAN (3) CASH REPLACEMENT CHARGES IS ZERO (4) HANDLING CHARGES -2
GUN WIELDING SECURITY (5) CAPEX
But Vakrabgee kendras avoid many of these expenses and reduce the others. So, ATMs will be profitable.
·
ALL CENTRES WILL HAVE ALL SERVICES
· COMPANY IS INVESTING CASH IN KENDRAS
WITHOUT GOING TO BANKS
(material Prepared for my YouTube Video)
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