Zaggle Prepaid IPO subscribed 98% so far; retail portion oversubscribed by 3.20 times

18 Sep 2023 , 12:10 PM

Zaggle Prepaid Ocean Services’ SaaS-based fintech platform is currently in the final stages of its Initial Public Offering (IPO), set to conclude today. The IPO garnered moderate interest in its early days, with only 43% subscription on the second day, receiving bids for 82.98 lakh equity shares against the total offering of 1.93 crore shares.

However, as the IPO entered its third day, there was a substantial increase in investor enthusiasm, reaching 98% subscription by 12:00 PM. Retail investors played a pivotal role in bolstering the offering, showing robust support by purchasing 3.20 times their allocated portion, which accounted for 10% of the total IPO size.

In contrast, high net worth individuals (non-institutional investors) displayed a relatively modest response, subscribing to 1.23 times their allotted shares. Qualified institutional buyers (QIBs), who were allocated 15% of the total offering, only subscribed to 9% of their portion.

The funds generated from the IPO will be utilized for various strategic purposes. These include customer acquisition and retention efforts, as well as the development of cutting-edge technology and innovative products. Additionally, the company intends to allocate the proceeds towards debt repayment and covering general corporate expenses.

Zaggle Prepaid Ocean Services has priced its IPO in the range of Rs 156 to Rs 164 per share, translating to a Price-to-Earnings (P/E) multiple of 87x on a FY23 basis.