Zaggle Prepaid Ocean Services to Raise INR 563 Crore in IPO to Fund Growth Initiatives
Zaggle Prepaid Ocean Services Limited (“Zaggle”), a leading spend management platform in India, is set to open its initial public offering (IPO) on September 14, 2023. The company plans to raise INR 563 crore through the IPO, which will consist of a fresh issue of shares worth INR 392 crore and an offer-for-sale (OFS) of 10,449,816 equity shares by eight selling shareholders.
The selling shareholders include the company’s promoters, Raj P Narayanam and Avinash Ramesh Godkhindi, as well as venture capital firms VenturEast Proactive Fund LLC, GKFF Ventures, and VenturEast SEDCO Proactive Fund LLC.
The offer price for the IPO has not been finalized yet. However, if the offer price is set at INR 164 per share, the total issue size will be INR 563.38 crore. This is the same price at which the company undertook a pre-IPO placement in August 2023.
The proceeds from the IPO will be used by Zaggle to fund its growth initiatives, which include:
- Customer acquisition and retention: Zaggle plans to use the proceeds to acquire new customers and retain existing customers. The company will also invest in marketing and sales initiatives to reach a wider audience.
- Development of technology and products: Zaggle will use the proceeds to develop new technologies and products to improve its spend management platform. The company will also invest in research and development to stay ahead of the competition.
- Repayment of debt: Zaggle will use a portion of the proceeds to repay its outstanding debt. This will improve the company’s financial health and free up resources for growth.
Zaggle is a well-established player in the spend management market, with over 5 crore prepaid cards issued in partnership with banking partners and over 0.23 crore users. The company’s platform helps businesses manage their employee expenses, travel and entertainment expenses, and other business expenses.
Zaggle’s network of corporate customers includes several industries such as banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and automobile. The company has relationships with several corporate brands such as TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL (RP – Sanjiv Goenka Group), Hiranandani group, Cotiviti, and Greenply.
The IPO will be managed by ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial. KFin Technologies will be the registrar.
The IPO is expected to be well-received by investors, given Zaggle’s strong track record and growth potential. The company is well-positioned to capitalize on the growing demand for spend management solutions in India.
In addition to the above, here are some other key highlights of the IPO:
- The anchor book will be opened for a day on September 13, 2023.
- The offer will close on September 18, 2023.
- The minimum investment amount for retail investors is INR 10,000.
- The company has a strong management team with a proven track record.
- The company is backed by leading venture capital firms.
Overall, the Zaggle IPO is a good opportunity for investors to participate in the growth of a leading spend management platform in India.
Related News
- 22 Sep
Samhi Hotels Stock Lists with 6.75% Premium, Analysts Recommend Booking Profits
Samhi Hotels stock made a weak debut on the stock exchanges, listing at a premium of just 6.75% over the IPO price. Several analysts have recommended booking profits in the stock, citing its loss-making status and negative net worth.
- 22 Sep
Signature Global IPO Subscribed 11.88 Times on Final Day
The Signature Global IPO was subscribed 11.88 times on the final day of bidding. The company will use the proceeds to repay debt and for land acquisitions and general corporate purposes. The IPO is expected to list on October 4, but this may change due to the new timeline of T+3.
- 22 Sep
Sai Silks IPO Oversubscribed 4.4 Times on Final Day of Bidding
Sai Silks IPO was oversubscribed 4.4 times on the final day of bidding, with qualified institutional buyers and high networth individuals supporting the issue on closing day. The net fresh issue proceeds will be utilized by the company mainly for the setting up of 30 new stores, two warehouses, working capital requirements and repaying debts. The trading in its equity shares will commence with effect from October 4, as per the IPO schedule.
- 22 Sep
Pharma company Valiant Laboratories to go public on September 27
Pharma company Valiant Laboratories is going public on September 27 at a price band of Rs 133-140 per share. The company plans to raise Rs 152.46 crore via the IPO. Proceeds will be used to fund the expenditure for setting up a manufacturing facility for speciality chemicals and for working capital requirements and general corporate purposes. Valiant Laboratories is a Mumbai-based API and bulk drug manufacturing company with a focus on Paracetamol. It is owned by the promoters including Dhanvallabh Ventures LLP, which holds 62.5 percent shareholding. Valiant Organics, the listed entity on the BSE and NSE, is the promoter of Dhanvallabh Ventures LLP with 73.15 percent stake.
- 21 Sep
Unihealth Consultancy makes tepid debut on NSE Emerge
Unihealth Consultancy, a healthcare service provider, made a tepid debut on the NSE Emerge platform on September 21, listing at Rs 135, a 2.2 percent premium over its issue price of Rs 132. The stock was trading at Rs 137.30 at 11.40 am. The company has a number of positives going for it, such as its strong growth potential, its diversified business model, and its focus on the African market. However, investors who are considering investing in Unihealth Consultancy should carefully consider the company's fundamentals, the current market conditions, and their own risk appetite before making a decision.
Leave a Reply