SEBI has given a clean chit to a recently conducted an investigation into the trading activities of certain entities in the scrip of Vakrangee
Vakrangee shares were locked in 5 percent upper circuit for fifth consecutive session on Thursday after the company received clean chit from market regulator SEBI and EOW in stock manipulation case.
The stock was quoting at Rs 30.70 on the BSE and there were pending buy orders of 1,427,065 shares, with no sellers available, at 12:37 hours IST.
"SEBI has given a clean chit to a recently conducted an investigation into the trading activities of certain entities in the scrip of Vakrangee," the company said.
During the investigation, there were no findings or instance of any stock manipulation by promoter or promoter group entities, it added.
During the SEBI investigation, it was observed that promoter entities viz, NJD Capital Private Limited along with Vakrangee Holdings Private Limited, Dinesh Nandwana and Dinesh Nandwana (HUF) (being members of promoter and promoter group), had increased their shareholding from 38.71 percent of share capital to 41.61 percent between June 2015 to August 2015.
They were required to make disclosures related to the above transactions to the company / stock exchanges within the time frame specified thereunder. But it was observed by the SEBI that there was a slight delay in intimating the same to the company and to the stock exchanges.
The aforesaid matter was reviewed by SEBI and it was intimated to the promoters to be careful in future to avoid recurrence of such instances.
Commenting on the same, Dinesh Nandwana, MD & CEO, Vakrangee said, “We have always maintained that these rumour based media articles relating to stock manipulation are false and completely baseless. We have been proven right today as you can see the outcome of the EOW investigation and SEBI investigation.
The promoters also received a clean chit from the office of Economic offences wing (EOW) on November 21.
A complaint was filed with the office of Economic Offences Wing (EOW) against the company and its Promoter/ Managing Director & CEO Dinesh Nandwana relating to price/ volume manipulation and accordingly EOW had conducted an enquiry.
"We are positive and confident with respect to our business model. We have taken a strategic decision to upgrade all our existing stores into a standardised Next Gen format," Nandwana said.
With progressive efforts and strong positive response received from franchisees, there will be 3,500-4,000 outlets upgrading to the Next Gen model during this quarter before December 31st, which are already in the advanced stage of completion, he added.Vakrangee is a technology driven company, focusing on creating India's largest network of last-mile retail points-of-sale, to potentially enable every Indian to seamlessly benefit from financial inclusion, social inclusion, Digital India, Skill Development, Employment, Government programmes and a wider access to basic goods and services.