Vakrangee locked in lower circuit for fourth straight session

The stock locked in 10% lower circuit at Rs 237, falling 53% in past six trading days from Rs 505 on January 25, 2018.

Vakrangee locked in lower circuit for the fourth straight trading sessions, down 10% at Rs 237 on BSE, despite the company clarifying that it has not received any communication from market regulator investigating an alleged share price and volume manipulation.

“Vakrangee would like to highlight that we have not received any communication either from Stock Exchanges or Security Exchange Board of India (SEBI). The rumours of involvement of Company in price and volume manipulation are completely baseless and factually incorrect,” the company said in clarification on News Article & Market Rumours alleging the Company being investigated for price and volume manipulation.

The stock tanked 53% in past six trading days from Rs 505 on January 25, 2018. Vakrangee had on January 25 purchased two million shares of PC Jeweller for a little over Rs 112 crore through an open market transaction.

Vakrangee is a technology company based in Mumbai that provides banking, insurance, e-governance, e-commerce, and logistics services.

The Company clarified that Dinesh Nandwana who was an Independent Director in Garnet International Ltd. has already resigned from the directorship on July 13, 2017.

Dinesh Nandwana has no directorship in Ashtavakra IT Solutions Ltd and Vakrangee IT Solutions was sold in March 2014. Ashok Kumar Gautam was never being director of Vakrangee, it added.

The Company has treasury fund of more than Rs 1,500 crore. We had done Direct Equity Investments in PC Jeweller. Post this investment, we received feedback from our investors Community to avoid any direct equity investment, Vakrangee said.

Keeping this in mind, we have released the Treasury Investment Policy w.e.f. January 30, 2018 which states that we will not do any further direct equity investments, it added.

The company plan to release Capital allocation policy by end of Financial Year 2018 and there has been No single share pledge by the Promoter of the Company.

Vakrangee further said the meeting of board of directors will be held on Monday, February 12, 2018 to review and approve capital allocation policy of the company.