Mumbai-based IT firm Vakrangee raising funds via QIP

Mumbai-based IT firm focused on e-governance and document management, Vakrangee Ltd, is raising money through a qualified institutional placement (QIP), according to a stock market disclosure. The firm did not say how many shares it would issue in the offering but said it would dilute up to 15 per cent stake.

At the current market price it can potentially raise up to $200 million. As first reported by VCCircle, the firm was in talks with PE firms like General Atlantic and Carlyle to raise around Rs 750 crore ($125 million).

Vakrangee was incorporated in 1990 by Dinesh Nandwana, a chartered accountant, and is a prominent system integrator and end-to-end service provider for various Mission Mode Projects under National e-Governance Plan.

It is implementing election related projects, UID enrollment, direct benefit transfer through financial inclusion, public distribution system, common service centres, National Population Register, e-Mitra, land records and IGRS.

Early this year it was among the four firms which received approval from RBI to set up white label ATMs in the country.

As of March 31, 2014, promoters owned 38.77 per cent of Vakrangee but have recently subscribed to equity convertible warrants which would push up their holding to 41.65 per cent.

Vakrangee scrip closed at Rs 127.10 a share, down 1.43 per cent on BSE in a flat Mumbai market on Thursday.

(Edited by Joby Puthuparampil Johnson)

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