Zaggle Prepaid Ocean Services Ltd IPO: A Comprehensive Guide

14 Sep 2023 , 06:17 AM

Zaggle Prepaid Ocean Services Ltd, a FinTech-SaaS company, is planning to launch its initial public offering (IPO) with the following details:

1. Price Band: The company has set a price band of Rs 156-164 per share for its IPO.

2. Minimum lot size: Investors can apply for 90 shares in a lot which is worth Rs 14,760.

3. Allocation Breakdown: In this offering, 75% of the net offer is earmarked for qualified institutional buyers (QIBs), while non-institutional investors (NIIs) have a reserved allotment of 15%. Retail investors, on the other hand, will have access to 10% of the total offer.

4. Subscription Dates:

• The IPO will open for subscription on September 14, 2023.
• Anchor investors’ bidding will commence on September 13, 2023.
• The subscription period will close on September 18, 2023.

5. Allotment and Listing Dates:

• Basis of allotment will be finalized on September 22, 2023.
• Refunds to investors will initiate on September 25, 2023.
• The company’s shares are expected to be listed on stock exchanges on September 27, 2023.

6. IPO Details:

• The IPO consists of a fresh issue of shares worth Rs 392 crore by the company.
• Additionally, there will be an offer-for-sale (OFS) of 10.45 million shares by eight selling shareholders, including promoters Raj P Narayanam and Avinash Ramesh Godkhindi.
• The company aims to raise Rs 564 crore at the higher end of the pricing range.
• This IPO values the company at Rs 2,000 crore.

7. 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.

8. Debt Position:

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

9. Financial Institutions Involved:

• ICICI Securities, Equirus Capital, IIFL Capital Services, 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.