Zaggle Prepaid Ocean Services Shares Debut at 1.22% Discount Despite Strong IPO Interest

22 Sep 2023 , 10:00 AM

Despite garnering significant investor interest during its initial public offering (IPO), Zaggle Prepaid Ocean Services’ shares made their debut on the stock exchanges at a slight discount of 1.22%.

On the NSE, Zaggle Prepaid’s shares listed at Rs 164, opening flat. Meanwhile, on the BSE, they commenced trading at Rs 162, marking a 1.22% discount compared to the IPO issue price of Rs 164.

The SaaS-based fintech platform successfully generated Rs 563.38 crore through its public offering, pricing its shares at the upper limit of the price range set at Rs 156-164 per share. The offering is composed of a fresh issue portion, amounting to Rs 392 crore in shares, and an offer-for-sale (OFS) segment featuring 1.04 crore shares valued at Rs 171.38 crore. The OFS involves shares from eight selling shareholders, including the promoters.

The proceeds from the fresh issue will be allocated towards customer acquisition and retention, along with the development of technology and products, entailing an expenditure of Rs 340 crore. Additionally, a portion will be directed towards debt repayment, specifically Rs 17.08 crore, with the remaining funds serving general corporate purposes.

During the period spanning FY21-23, the company witnessed robust growth in its revenue from operations, achieving a Compound Annual Growth Rate (CAGR) of 52%. Concurrently, the adjusted Profit After Tax (PAT) exhibited a CAGR of 38 percent during the same period, primarily driven by a remarkable 151% surge in its user base. In the fiscal year FY23, the company reported a consolidated net profit of Rs 36.9 crore on revenue of Rs 553.5 crore.