Payments & Data Company Zaggle announces its IPO

Zaggle Prepaid Ocean Services IPO opens on September 14, 2023, closes on September 18, 2023  

BILKULONLINE

Ahmedabad, Sept 12: Zaggle Prepaid Ocean Services IPO to hit the market on September 14 and will close on September 18. Zaggle Prepaid Ocean Services IPO to raise around ₹563 crores via IPO that comprises fresh issue of ₹392 crores and offer for sale up to 10,449,816 equity shares ₹1 each. The retail quota is 10%, QIB is 75%, and HNI is 15%.

Founded in 2011, Zaggleis a leading player in spend management with a differentiated value proposition and diversified user base. Zaggle has created a market niche in India by offering a combined solution for spend management through prepaid cards and employee management (through SaaS).

Avinash Godkhindi, Chief Executive Officer and Managing Director and Aditya Kumar GV, Chief Financial Officer of Zaggle were present at Ahmedabad to brief the media about the IPO.

Avinash while briefing their success story said “the very name of Zaggle was derived from the word haggle which we all Indians are good at. Since we want bestest of services at the fairest price as a deal. We at Zaggle made it happen through sumptuous offers for them through our networking with several banks”.

“Zaggle builds world-class financial solutions and products to manage the business expenses of corporates, SMEs, & Startups through automated and innovative workflows.

Zaggle was founded in 2011 by Phani N. Raj, a serial entrepreneur, and seed investor. Zaggle is a payments company with a focus on businesses and corporates” added Avinash.

Zaggle Prepaid Ocean Services IPO has a face value of ₹1 per share while the price band for the book building IPO has been set in the band of ₹156 to ₹164. The final price will be discovered within this band through the process of book building. 

Zaggle Prepaid Ocean Services IPO will be a combination of a fresh issue and an offer for sale (OFS). The fresh issue portion comprises the issue of 2,39,02,439 shares (2.39 crore shares approximately), which at the upper price band of ₹164 per share will translate into fresh issue size of ₹392 crore. 

The offer for sale (OFS) portion of the IPO comprises the sale of 1,04,49,816 shares (1.045 crore shares), which at the upper price band of ₹164 per share will translate into an offer for sale (OFS) size of ₹171.38 crore. 

Out of the 1.045 crore shares put up under the OFS, the 2 promoter shareholders will sell a total of 30.59 lakh shares while the rest of the shares will be sold in the OFS by the non-promoter shareholder investors in the company. 

Therefore, the overall IPO of Zaggle Prepaid Ocean Services Ltd will comprise of the issue of 3,43,52,255 shares (3.44 crore shares approximately), which at the upper price band of ₹164 per share will translate into a total IPO issue size of ₹563.38 crore.-

Utilization of Funds:

Zaggle plans to use the net fresh issue proceeds as follows:

• Rs 300 crore for customer acquisition and retention over three financial years from FY24 to FY26.
• Rs 40 crore for the development of technology and products.
• Rs 17.08 crore to repay debts.
• The remaining funds will be allocated for general corporate purposes.

Debt Position:

• As of March 2023, the company had total outstanding borrowings of Rs 90.03 crore.

Financial Institutions Involved:

• ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial are the merchant bankers overseeing the IPO.
• KFin Technologies is the registrar handling the IPO process.

Zaggle is described as a leading player in spend management with a unique value proposition and a diversified user base. 

The company extends its offerings to a diverse array of stakeholders, including employees, channel partners, and customers, and collaborates effectively with merchants, banks, and NBFCs, ensuring a compelling value proposition for each party involved. As of the end of June, the company boasted 1,896 customers and an impressive user base of 19.82 lakh.

Zaggle’s total revenue during the year ended March 31, 2022, rose 1.5X to INR 371.66 Cr from INR 240.29 Cr in the previous fiscal. The fintech startup’s revenue from operations also rose to INR 371.25 Cr from INR 239.97 Cr in FY21.

Note: Investors must read all the details of the company from official sources before investing in any company.