Shares of Vakrangee rallied 10% and reached an intra-day high of Rs 18.65 on 11 September after the company said it was looking to acquire a stake in a leading automated teller machine provider.

The company has entered into a binding term sheet with private equity investor Aavishkaar Capital to acquire a 48.5% stake in Vortex Engineering for Rs 18.43 crore.

The transaction is set to be completed within 30 days from the term sheet date.

The company will acquire 3,65,575 equity shares that represent a 48.5% stake in Vortex Engineering from Aavishkaar India Micro Venture Capital Fund, Aavishkaar Venture Management Services Private Limited, and Aavishkaar India II Company Limited.

Vortex Engineering is one of the leading providers of ATMs (automated teller machines) and has shipped 10,000+ ATMs across India, Africa, and South Asia so far. The company also makes Software products that complement the ATM hardware.

Dinesh Nandwana, Managing Director & Group CEO of Vakrangee, said, “This is a strategic investment which will help the company to have a complete backward integration in place and thereby unlocking future growth opportunities, leverage the cost synergies and technology know-how. Our move into this acquisition is yet another validation to achieve our set targets of 3 lakhs outlets along with Minimum 15,000+ ATMs by 2030.”

At 12:52 pm, the shares of Vakrangee were trading at Rs 17.95 or 9.12% above its previous close of Rs 16.45 on NSE.