LIC-backed penny stock: A significant development in the financial sector recently caught investors’ attention when a LIC-backed penny stock, Vakrangee Limited, experienced a substantial surge in its share price. The rally came in the wake of a strategic partnership between Vakrangee and Canara Bank. This collaboration aims to provide enhanced banking services in rural and underserved regions of India. The move not only strengthens financial inclusion but also positions Vakrangee as a key player in delivering last-mile banking solutions.
Reasons Behind the LIC-Backed Penny Stock Surge-
1. Partnership With Canara Bank:
Vakrangee has entered into an agreement with Canara Bank to act as a Corporate Business Correspondent (CBC). Through its expansive network of Next-Gen Vakrangee Kendras, the company will offer services such as account openings, cash deposits and withdrawals, loan repayments, and other banking facilities. This partnership is particularly focused on Tier-4 to Tier-6 regions, addressing the financial needs of rural communities.
2. Financial Inclusion Push-
The collaboration aligns with India’s broader financial inclusion goals. By leveraging Vakrangee’s Kendras in underserved areas, the initiative ensures that even the most remote populations gain access to essential banking services. This approach not only empowers individuals but also boosts the company’s role in India’s socio-economic development.
3. LIC’s Involvement-
The Life Insurance Corporation of India (LIC), which holds a 5.07% stake in Vakrangee, adds credibility to the company’s prospects. LIC’s backing is seen as a vote of confidence, enhancing investor sentiment.
1. Share Price Surge-
On December 19, 2024, Vakrangee’s shares witnessed a sharp rise of 7.46%, closing at ₹31.39 compared to the previous close of ₹29.21. The stock has gained approximately 70% from its 52-week low of ₹18.45 and is nearing its 52-week high of ₹37.72.
2. Market revenue and Valuation-
Vakrangee boasts a market capitalization of over ₹3,300 crore. Despite its categorization as a penny stock, it has shown resilience, attracting attention from both retail and institutional investors.
Advantages of the partnership for investors
1.Leveraging Vakrangee Kendras:
The company’s Kendras act as franchise-based one-stop service centers offering a wide range of services, including banking, insurance, e-commerce, and logistics. The partnership with Canara Bank amplifies the Kendras’ utility by adding crucial banking services to their portfolio.
2. Rural Market highly involvement:
By focusing on rural and semi-urban markets, Vakrangee stands to benefit from untapped demand. Its ability to provide banking services in these areas positions the company as a frontrunner in bridging the urban-rural divide.
3. Enhanced Revenue Streams:
The collaboration is expected to boost Vakrangee’s revenues by diversifying its service offerings. As more people in remote areas avail banking services, the Kendras could see increased footfall and transactions.
Vakrangee’s partnership with Canara Bank represents a significant milestone in its journey toward financial inclusion. The strategic collaboration is not only beneficial for rural communities but also positions Vakrangee as a critical player in India’s evolving banking landscape. The surge in its share price reflects investor optimism about its growth potential.
Many investors are taking advantage of this partnership and you can also get a huge benefit by investing it. So open a demat account in Angel one-
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