Zaggle Prepaid Secures Rs 98 Crore Ahead of IPO Through Pre-IPO Placement

23 Aug 2023 , 01:26 PM

Zaggle Prepaid Ocean Services, a Software-as-a-Service (SaaS) fintech company in the realm of prepaid services, has successfully raised a substantial sum of Rs 98 crore ahead of its forthcoming initial public offering (IPO). This achievement has been realized through a pre-IPO placement of 5,975,609 equity shares, priced at Rs. 164 per equity share (including a share premium of Rs. 163 per equity share), accomplished in two phases.

In the initial phase, Zaggle secured INR 73 crore from a consortium of investors, which included entities such as Vikasa India EIF I Fund and Acintyo Investment Fund PCC – Cell 1, as confirmed in an official communication by Zaggle.

The subsequent phase witnessed the allotment of 1.524 million equity shares, amounting to INR 25 crore, to Value Quest SCALE Fund.

This pre-IPO funding round was executed in compliance with the endorsement of the board and shareholders during meetings held on August 10 and 11, 2023, respectively, as stated by the fintech startup.

Zaggle had previously filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its IPO last year. According to the DRHP, the IPO structure involves a fresh issuance of equity shares valued at Rs 490 crore, alongside an offer-for-sale component encompassing up to 1.05 crore equity shares.

The generated proceeds from the fresh issue will be allocated towards customer acquisition and retention endeavors, as well as the development of technology and products. A segment of the proceeds will also be designated for repaying specific borrowings and addressing general corporate requirements.

Out of the total IPO offering, 75% of the shares will be earmarked for qualified institutional buyers (QIBs), while 15% will be allocated to non-institutional investors (NIIs), and the remaining 10% will be reserved for retail individual investors (RIIs).

ICICI Securities Limited, Equirus Capital Private Limited, IIFL Capital Services Limited, and JM Financial Limited have been appointed as the book running lead managers for this IPO.