Zaggle Prepaid Ocean Services, a leading player in the fintech sector, has revealed the pricing range for its eagerly awaited initial public offering (IPO), setting it at an impressive Rs 156-164 per share. This marks a substantial premium, ranging from 156 to 164 times the face value of its shares. The IPO is set to kick off on September 14, creating quite a buzz in the financial world.
Zaggle IPO Date, Price, Listing
IPO Date: 14th September 2023
IPO Share Price: Rs 156 to 164
Face Value : ₹1 per share
Lot Size: 90 Share
Listing At : BSE, NSE
This IPO comprises a mix of fresh equity shares worth up to Rs 392 crore and an offer for sale (OFS) by its promoters and select external investors, totaling Rs 174 crore.
Following the IPO’s conclusion, the promoter and promoter entities will collectively maintain approximately 42 percent of the paid-up equity. At the same time existing selling shareholders will collectively reduce their holdings by slightly over 8 percent.
In the OFS segment, Founder and Chairman Raj P Narayanam will divest a minimal 0.02 percent of his 44 percent stake. Avinash Ramesh Godkhindi, another promoter who serves as the Managing Director, will also part with an equivalent stake.
External investor VenturEast Proactive Fund plans to sell 2.17 percent, while GKFF Ventures will divest only 0.02 percent. Additionally, VenturEast Sedco Proactive Fund aims to sell 1.72 percent, VenturEast Trustee Company will divest 3.78 percent, and individual investor Koteshwara Rao Meduri plans to reduce his holdings by 0.02 percent.
Should We Invest In Zaggle IPO?
Chairman Raj Narayanam disclosed that, prior to the IPO, foreign funds and non-family shareholders collectively held 15 percent of the company.
Financially, in FY22, the company reported revenues of Rs 370 crore, resulting in a net income of Rs 40 crore. In FY23, there was a significant increase in revenue to Rs 550 crore, with a net income of Rs 23 crore. Some of this dip in net income was attributed to additional expenses related to the employee stock option plan, according to Avinash Ramesh Godkhindi, who also noted that the majority of the company’s revenue is derived from external commercial channels, with the remainder coming from employee channels.
Despite its B2B focus, Zaggle Prepaid Ocean Services plans to allocate a significant portion of the IPO proceeds, approximately Rs 300 crore, for customer acquisition and retention, showcasing its dedication to expanding its market presence.
The company also has plans to utilize the funds raised through the IPO for technology and product development (Rs 40 crore), debt repayment/prepayment (Rs 17.1 crore), and general corporate purposes. With the IPO set to launch soon, all eyes are on Zaggle Prepaid Ocean Services as it charts its course for further growth and innovation in the fintech sector.