Vakrangee

Rohitsharma · February 7, 2018, 6:09am

I was watching CNBC in the morning , they were discussing why Vakrangee bought PC jwellars. Thier was one of the analyst ( I dont remember the name ) to whom when it was asked , did you know why vakrangee bought PC jwellar shares worth approx 100 crores. He sounded v skeptical and said that he knows the reason but can not share publicly on tv. and than he asked to avoid PC jwellar shares also. I dont understand if he really knew the reason for buying PCJ shares by Vakrangee. Why didnt he disclose it.

Was he intentionally saying this so that they can get PC Jwellar shares at lower prices ? Guys please share your views on it.

Billu · February 7, 2018, 6:57am

Well the reason could be, if your information is unsubstatiated, you could get into legal troubles, defamation case.

As for buying/not-buying PCJEWELLER, go with the analyst’s reputation, past advisory’s successes, on this one.

valuedude75 · February 7, 2018, 7:20am

The weakest link in this is whether the VKs are real (or not). The worst case scenario is it is being used as a front to “clean” money shown as franchise fee…

Darkwanderer79 · February 7, 2018, 7:27am

I stay in Thane and I happened to visit a VK purely by chance a month back. It was a new VK as i had been to that place before for Aadhar enrollment / modification. At that time it wasnt a part of Vakrangee.

When I went there recently it had changed into a VK. The owner was the same and he informed me that they had stopped doing Aadhar enrollments as the same was being done by banks.

Haven’t searched for any other VK nearby my place.

gpharshas · February 7, 2018, 8:47am

Is there really a fee for franchise…I could not locate the source in their website.
There is a franchise PPT in VK website, Mentioned no deposit/Fee

atul1082 · February 7, 2018, 9:05am

I think we could call to some VKs as customers and seek charges for few services, timings etc.In case it does not exist, not operational etc, we would come to know the general status.few samples will give a better pic.

nsathishk · February 7, 2018, 10:03am

@Darkwanderer79,
Good that you visited an operational VK.
Can you tell us a bit more about what you found there - what products and services were being marketed and what the customers were visiting the place for (Aadhar or Banking or Insurance or eCommerce?).

Best information would be if we know what motivates new franchisees to join VK - we should appreciate their confidence in taking up VK full time putting their own money - they must have done their due diligence with existing franchisees and also understand the economics of VK much better than what we are able to do reading through Investor Presentations and Financial Reports.
Eagerly waiting for nuggets from such conversation with VK Franchisee owners.

neil_loamas · February 7, 2018, 11:16am

But even if franchise are run efficiently, we must know how many are operational and vakrangee official numbers are true.

atul1082 · February 8, 2018, 4:10pm

Even after management came on various channels and gave clarifications, the stock is going down day after day.could any experienced boarders explain the possible reason?

valuedude75 · February 9, 2018, 3:45am

No one except the promoters exactly know what is happening. There is obvious information asymmetry in this situation and it cannot be explained by numbers/ models etc. etc. You can do the math from this point on.

There is a famous poker saying “If you have been in a poker game for a while, and you still don’t know who the patsy is, you’re the patsy”.

hnk_so · February 9, 2018, 4:47am

Only buyers…hopefully tide turn positive

hnk_so · February 9, 2018, 5:17am

Since correction…most of trades are delivered volume

amitjain2711 · February 9, 2018, 6:39am

Checkout out the traded Qty!

Dashboard%20%20%20Kite

rvetri · February 9, 2018, 7:35am

Yes… It is like ordinary people accuse someone of being a thief… When
nothing has been stolen from them… Nobody says he has stolen from me and
so he is a thief. It is just opinions from people who do not know what
happened…
And the police… Does not even file an fir… As no one has complained
to them saying he is a thief…
I take a position… Let police file an fir based on some factual
complaints… Till then the person is innocent…

sandeepayachit · February 9, 2018, 10:01am

Is the company buying back shares?

peepin2me · February 9, 2018, 1:12pm

There is a rumor that a buyback may be announced in the board meeting scheduled on Monday.

atul1082 · February 9, 2018, 2:46pm

Could it be to shore up the share price?

KC1986 · February 10, 2018, 1:30pm

KiranP · February 10, 2018, 1:51pm

Some new information in that article:

The Income Tax department is also keeping a close eye on Vakrangee Ltd. A senior I-T official told Indiatoday.in that “if the shareholding patterns of last 10 years (of the company) are examined, then one would find names of some entities who are not only holding majority of shares but also rigging the price on behalf of promoter”.
The I-T official said, “If NSE’s bulk deals are examined, then there are huge deals done by these entities, where shares were sold in crores of money. Where the money gone has gone, that needs to be investigated”

If sources are to be believed, a fresh complaint was filed by a set of investors-cum-shareholders (including few FIIs) against Vakrangee Ltd in November 2017 with allegations of price manipulation. SEBI has started looking into the matter.

bhaskarjain · February 10, 2018, 2:33pm

I have heard that pressure is mounting on two independent directors (ex-LIC and ex-SEBI) to resign from Vakrangee’s board before further action is taken against the company.

This to me is the key take-away from the article. If any of the independent directors resign, then it will further lead to a major sell-off.

disc - not invested and no plans