Zaggle IPO day 2: Issue subscribed 47%

15 Sep 2023 , 09:54 PM

SaaS-based fintech platform Zaggle Prepaid Ocean Services struggled to generate significant interest for its IPO, even on the second day of bidding, which took place on September 15. The initial public offering garnered a subscription rate of just 43%, with bids received for 82.98 lakh equity shares against the offered size of 1.93 crore shares.

Retail investors were a bright spot for the offering, showing strong support by subscribing 1.9 times their allocated portion, which accounts for 10 percent of the IPO size.

However, high net worth individuals (non-institutional investors) and qualified institutional buyers (QIB) exhibited lukewarm interest, subscribing to only 29 percent and 0.02 percent, respectively, of the portions allocated to them, which represent 15% and 75% of the total offer size.

Even on the first day of bidding, which occurred on September 14, the subscription rate was a modest 19%.

Zaggle Prepaid Ocean Services, a business spend management platform provider, aims to raise Rs 563.38 crore through its maiden public issue, consisting of a fresh issuance of shares valued at Rs 392 crore and an offer-for-sale (OFS) of 1.04 crore shares worth Rs 171.38 crore by selling shareholders, including promoter Raj P Narayanam, Avinash Ramesh Godkhindi, and corporate entity Zuzu Software Services.

The net proceeds from the fresh issue will be allocated towards customer acquisition and retention, technology and product development, and debt repayment, in addition to covering general corporate expenses.