Vakrangee will invest in R&D and technology, training facilities, brand development programs, organic company expansion, and a contingency fund.
Following the business’s announcement of its capital allocation policy and a declaration that it is debt-free, shares of IT company Vakrangee continued to trade higher on Monday for the second straight day.
Before the rebound, the stock had dropped 62% in nine consecutive sessions due to media claims that SEBI was investigating the firm for allegedly manipulating share prices and volume. However, the company stated it had not heard from Sebi or stock exchanges.
The board of directors has established a capital allocation strategy to reassure investors, stating that as of December 2017, the total available cash balance was Rs 1,372 crore.
The remaining sum would be given to shareholders as dividend payments (Rs 250 crore) and share purchasebacks (Rs 1,000 crore), with the company reinvesting Rs 122 crore in business.
Regarding reinvestment, Vakrangee will support projects to expand its brand, technology, and R&D, as well as training infrastructure, organic company growth, and a contingency fund.
According to Vakrangee, one of the most important considerations when developing a capital allocation policy is that the firm is currently debt-free and has no immediate plans to take on new debt.
There were pending purchase orders for 5,075,360 shares at 12:40 IST, with no providers available, and the share price was trapped at a 5% upper circuit at Rs 212.10.
