Zaggle Prepaid sets IPO price band at Rs 156-164; Check key dates, lot size & other details

The initial public offering (IPO) of Zaggle Prepaid Ocean Services will kick-off for subscription on Thursday, September 14. The company will be selling its shares in the range of Rs 156-164 apiece. The three-day bidding process will conclude on September 18, Monday.

Incorporated in 2011, Zaggle Prepaid Ocean Services provides financial technology (fintech) products and services to manage corporate business expenses through automated workflows. As of FY 2023, it had seven offices across India, more than 1,750 customers and over 1.7 million end users.

The company intends to raise a little more than Rs 563 crore, which includes a fresh share sale of Rs 392 crore and offer for sale (OFS) of up to 1.04 crore equity shares by its promoters and existing shareholders. Anchor book shall open on Wednesday, September 13. Investors can make bids for 90 equity shares and its multiples thereof.

Promoters Raj P Narayanam and Avinash Ramesh Gokhindi, along with shareholders including VenturEast Proactive Funds LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, VentureEast Trustee Company, Zuzu Software Services and Koteswara Rao Muderi will participate in OFS. The weighted average cost of acquisition of these investors is between Rs 0.02-3.78 per share.

Ahead of its IPO, the company undertook a pre-IPO placement of 44.51 lakh equity shares at a price of Rs 164 per shares aggregating to Rs 73 crore on August 16 and a similar placement of 15.24 lakh equity shares at same price amounting to Rs 25 crore on August 21. This has reduced the size of fresh issues in the offering.

The company intends to utilise the net proceeds from the fresh issue towards expenditure towards customer acquisition and retention; expenditure towards the development of technology and product; repayment or pre-payment of certain borrowings; and general corporate purposes. Funds from offer-for-sale would go to selling shareholders of the company.

Zaggle Prepaid offers fintech and SaaS products and services to corporates working in the fields of banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and automobile industries. Zaggle Prepaid Ocean Services' clientele includes Tata Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, Mazda, RP Sanjiv Goenka Group and among others.

The company has reserved 75 per cent of the net offer for qualified institutional bidders (QIBs). The quota for non-institutional investors (NIIs) stands at 15 per cent. The remaining 10 per cent of the offer will be reserved for retail investors.

ICICI Securities, Equirus Capital, IIFL Securities and JM Financial are the book-running managers to the issue, while Kfin Technologies has been appointed as the registrar to the issue. Shares of the company are likely to be listed on both BSE and NSE.

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