Zaggle Prepaid IPO subscribed 12.57 times on last day

18 Sep 2023 , 09:44 PM

Zaggle Prepaid Ocean Services, a provider of business spend management software and services, has garnered a favorable response from investors in its inaugural public issue. On the final day of bidding, September 18, investors subscribed to 24.28 crore equity shares, a remarkable 12.57 times higher than the initial offer size of 1.93 crore shares.

Qualified institutional buyers displayed significant interest, bidding 16.73 times the portion allocated to them, representing 75% of the total offer size. High net worth individuals and retail investors, who had allocations of 15% and 10%, respectively, subscribed 8.85 times and 5.94 times their respective portions.

The subscription rate stood at 43% at the end of the second day of bidding, which was September 15.

Zaggle’s SaaS-based fintech platform aims to raise Rs 563.38 crore through the public issue, at the upper end of the price band set at Rs 156-164 per share. The offering comprises a fresh issue component valued at Rs 392 crore and an offer-for-sale (OFS) segment of 1.04 crore shares, worth Rs 171.38 crore, offered by eight selling shareholders, including promoters Raj P Narayanam and Avinash Ramesh Godkhindi.

The company intends to utilize the fresh issue proceeds primarily for customer acquisition and retention, along with the development of technology and products, with an allocation of Rs 340 crore. Additionally, it will use the funds to clear its debt of Rs 17.08 crore, with the remaining balance allocated for general corporate purposes.

Zaggle is set to finalize the allocation of IPO shares by September 22, with equity shares being credited to successful investors’ demat accounts by September 26. Unsuccessful investors will receive refunds, and ASBA accounts will be unblocked by September 25.

Trading in Zaggle’s equity shares is scheduled to commence on the BSE and NSE from September 27, according to the IPO timeline.