- The initial public offering comprises a fresh issue of shares worth ₹392 crore by the company, and an offer-for-sale of 1,04,49,816 equity shares by eight selling shareholders, including promoters Raj P Narayanam, and Avinash Ramesh Godkhindi
- The anchor book will be opened for a day on September 13, while the offfer will close on September 18
- Price Band fixed at ₹156 to ₹164 per Equity Share of face value of ₹1 each
- Bids can be made for a minimum of 90 Equity Shares and in multiples of 90 Equity Shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, SEPT 12
FinTech-SaaS company Zaggle Prepaid Ocean Services Limited on Tuesday announced its initial public offer will open on September 14, with a likely fund raising plan of around ₹563 crore.
The anchor book will be opened for a day on September 13, while the offer will close on September 18.
The Price Band of the Offer has been fixed at ₹ 156 to ₹ 164 per Equity Share. Bids can be made for a minimum of 90 Equity Shares and in multiples of 90 Equity Shares thereafter.
The initial public offering comprises a fresh issue of shares worth ₹392 crore by the company, and an offer-for-sale of 1,04,49,816 equity shares by eight selling shareholders, including promoters Raj P Narayanam, and Avinash Ramesh Godkhindi.
VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, Ventureast Trustee Company, Zuzu Software Services, and Koteswara Rao Meduri are other selling shareholders in the OFS.
Avinash Ramesh Godkhindi, MD & CEO, said, “Gujarat is one of the largest markets for the company with more clients in Ahmedabad. It has issued more than 5 crore prepaid cards in partnership with banking partners and more than 0.23 crore users served, as of March 2023.”
Zaggle, a leading player in spend management with a differentiated value proposition and diversified user base, will make use of net fresh issue proceeds for customer acquisition and retention at a cost of ₹ 300 crore, and development of technology and products amounting to ₹ 40 crore, in three financial years FY24 to FY26.
The company will also be repaying its debts of ₹ 17.08 crore via fresh issue money, and the remaining will be for general corporate purposes.
As of March 2023, its total outstanding borrowings were ₹ 90.03 crore.
Incorporated in 2011, Zaggle, which operates in a segment where it interacts and interfaces with customers (businesses) and end users (employees), has recorded consolidated net profit of Rs 22.9 crore on revenue of Rs 553.46 crore for the financial year ended March FY23. The numbers are not comparable with previous financial years which are standalone numbers.
Its network of corporate customers includes several industries like banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure and automobile industries. It has relationships with several corporate brands like TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL (RP – Sanjiv Goenka Group), Hiranandani group, Cotiviti and Greenply Industries.
As of March 2023, it had 1,832 corporate accounts and 579 SMB (Small and medium sized business) accounts, with average user base per business was 943 users. It had issued 1.08 crore active cards (that had not expired as of that date) to 2,411 customers across India, which used Zaggle’s software to manage spends related to their employees, business, channel partners and customers.
Promoters hold 57.91 percent stake in the company and the rest of shareholding is held by public, including Zuzu Software Services (the largest shareholder with 17.8 percent stake), and VenturEast Proactive Fund LLC (7.42 percent).
ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial are the merchant bankers to the issue, while KFin Technologies is the registrar.
The issue will be listed on both the BSE and NSE.
