Mumbai: Technology firm Vakrangee has made changes in its capital allocation plan, which had earlier included a share buyback, dividend payout and reinvestment into the existing business.

The Rs 6,536-crore company runs a network of last-mile retail outlets (that includes ATMs) to deliver banking, insurance, e-governance, e-commerce and logistics services to the rural, semi-urban and urban markets.

The company announced after market hours on Thursday that it has changed the capital allocation policy based on the current capex plan for the ATM business and increased spending in marketing.

Vakrangee said it wants to upgrade its more than 45,000 outlets to "Nextgen Vakrangee kendras". The new centres will have a standardised look and branding, designed by store brand consultants Lewis & Hickey.

The plan is to install ATMs in all these centres for which the total expenditure is expected to be Rs 900 crore, based on the cost of Rs 2 lakh per ATM.

The company has plans to set up and manage 75,000 such outlets across the country by 2020.

In February, Vakrangee had come out with the capital allocation policy, which involved a Rs 1,000-crore share buyback, Rs 250-crore dividend payout and a Rs 122-crore re-investment in the business.

The stock markets, however, reacted negatively to the announcement on Friday. On the BSE, the Vakrangee scrip shed 4.96 per cent, or Rs 2.15, to close at Rs 41.20.

Vakrangee was recently in the news after Pricewaterhouse resigned as its statutory auditor from April 27, 2018. Pwc had done the limited review for the period till December 31, 2017. The company subsequently appointed AP Sanzgiri & Co Chartered Accountants as the statutory auditors.

Vakrangee which announced its fourth quarter results on Thursday said that its financial statements present the true and fair view of the state of the affairs and that it is fully compliant with the Ind-AS accounting standards.