Vakrangee advanced 3.71% to Rs 22.95 after the company said that it has entered into a share purchase agreement with Tata Capital Innovations Fund to acquire 18.5% equity stake in Vortex Engineering (Vortex) for Rs 7.03 crore.
Vortex Engineering is a leading provider of automated teller machines (ATMs) and multi-vendor ATM management software products. Vortex has shipped over 10,000 ATMs across India, Africa and South Asia and Software products to complement ATM hardware. It has reported a turnover of Rs 49.02 crore in FY23.The company will acquire 1,39,415 equity shares from Tata Capital Innovations Fund representing 18.5% of the equity stake in Vortex. The transaction is expected to be completed within 30 days.
This is a strategic investment which will help the company to have a complete backward integration in place for ATM Business and thereby unlocking future growth opportunities, leverage the cost synergies and technology know-how.
Vakrangee has become India's leading last mile distribution platform, offering a comprehensive physical and digital ecosystem across the country. Their services include real-time banking, financial services, ATM facilities, insurance, e-governance, e-commerce (including healthcare services), and logistics. With a focus on rural, semi-urban, and urban markets, Vakrangee is driving financial, social, and digital inclusion for the Indian population.
On a consolidated basis, net profit of Vakrangee surged 220.9% to Rs 219.2 crore on 14.69% increase in total income to Rs 5,179.5 crore in Q4 FY24 over Q4 FY23.
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