Vakrangee Share Price Surge 5% as RBI Renews WLA Authorisation

Vakrangee shares price, a penny stock backed by LIC, saw a 5% increase, reaching ₹16.71 on February 14, 2025. This marks the second day in a row the stock hit its upper circuit limit. The surge came after the Reserve Bank of India (RBI) renewed Vakrangee’s authorisation to operate White Label ATMs (WLAs) across India.

RBI’s Decision to Renew Authorisation

On February 12, 2025, Vakrangee announced that the RBI had extended its authorisation to operate WLAs until March 31, 2026. Vakrangee’s MD, Vedant Nandwana, expressed his satisfaction with the renewal, highlighting how crucial the ATM service is for the company’s business model, particularly in rural and semi-urban areas.

Company’s ATM Network and Future Plans

As of January 31, 2025, Vakrangee operates 6,035 WLAs, with 76% located in Tier-4 to Tier-6 areas. The company also runs 22,395 Vakrangee Kendra outlets, with 81% in Tier-4 to Tier-6 locations. In FY24, Vakrangee launched “VISION 2030,” setting ambitious goals to grow its network to over 3 lakh outlets and expand its ATM count to 15,000. The company aims to reach $1 billion in revenue and a gross transaction value of $150 billion by 2030.

The company has garnered significant interest from institutional investors, with LIC holding a 4.41% stake. Retail investors own 51%, while the promoter group holds 41.7%.

Stock Performance

Vakrangee’s stock has lost 38% of its value over the past year. However, in the last 2 sessions, the stock has gained more than 10%. Despite the recent rally, the stock is still down 31% in February 2025, following a 30% decline in January 2025. Currently, it is trading at ₹16.71, which is more than 56% below its 52-week high of ₹38.17.

Financial Performance

In Q3FY24, Vakrangee reported a total income of ₹67.88 crore, a 31.3% year-on-year increase. EBITDA stood at ₹5.48 crore, while the profit after tax (PAT) was ₹1.04 crore, compared to ₹1.24 crore in the same quarter last year. The company’s quarterly Gross Transaction Value (GTV) surpassed ₹13,699.8 crore, with over 3.2 crore transactions.

About Vakrangee

Founded in 1990, Vakrangee is one of India’s largest last-mile distribution networks, offering services like banking, insurance, ATMs, financial services, e-commerce, and more. The company’s renewed WLA authorisation and future growth plans aim to enhance financial and digital service accessibility, especially in underserved regions across India.

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