Zaggle Prepaid Ocean shares rally 15% on signing agreement with Visa

Shares of Zaggle Prepaid Ocean Services surged about 15 per cent to hit new high during the trading session on Friday after the company inked a new deal with Visa. The company, which recently made its debut at Dalal Street, infomred about the same through an exchange filing on Thursday.

"Zaggle Prepaid Ocean Services (Zaggle), has entered into a growth agreement with Visa Worldwide Pte. Limited (Visa)," said the company in the exchange filing. The deal with Visa is worth $20 million, or Rs 166 crore, to issue various forex co-brand cards for a period of five years., the company said.

Visa will pay the Launch Bonus for supporting the launch of forex cobrand cards. Visa will also pay incentives on forex transactions basis spend commitments detailed in the agreement, it added.  Zaggle can leverage existing corporate base to sell forex cards to employees of the corporate client, and it can be tightly coupled with Zaggle expense management solution.

Following the announcement, shares of Zaggle Prepaid Ocean Services surged about 15 per cent to Rs 247.70, its new all-time high, on Friday. The company was commanding a total market capitalization of more than Rs 2,875 crore. The scrip had settled at Rs 216.20 in the previous trading session.

Shares of Zaggle Prepaid Ocean Services were listed at the bourses on September 22. The company raised a total of Rs 563.38 crore via its initial stake sale by selling shares for Rs 164 apiece. The stock has gained more than 51 per cent from its issue price, while it is up 60 per cent from its low at Rs 155.60 hit on its maiden trading session.

On Wednesday, Zaggle announced its earnings for the first quarter ended on June 30, 2023. The company's net profit fell by more than 67 per cent on a year-on-year (YoY) basis to Rs 2.05 crore from Rs 6.3 crore in the year-on-year period. However, its revenue from operations came in at Rs 118.48 crore in Q1FY24, up 33.7 per cent from Rs 88.62 crore the previous year.

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