Vakrangee hits upper circuit on capital allocation policy
IT company Vakrangee hit its upper circuit on the bourses on Monday for the second consecutive trade session as the company announced its capital allocation policy, also announcing that it is a debt free company.
Before charting an upward trajectory, the stock had plunged in nine consecutive sessions to fall around 62 per cent on the bourses on the back of media reports that suggested that the company has come under SEBI’s radar for alleged share price and volume manipulation. However, the company denied of any such developments.
Further, the company’s board of directors approved the capital allocation policy of the company, posting a total available cash balance of Rs. 1,372 crore as of December 2017. The company is planning to reinvest Rs. 122 crore in the business and redistribute the rest amongst its shareholders through dividend payout worth Rs. 250 crore and share buyback worth Rs. 1,000 crore, respectively. The company is planning to expand its business organically.
On Monday, the stock ended at its upper circuit of Rs. 212.10 per share, higher by 5 per cent on BSE. Meanwhile, the S&P BSE Sensex closed at 34,300.47 level, higher by 0.87 per cent and NSE Nifty50 closed at 10,539.75 level, higher by 0.81 per cent on Monday, respectively.