Zaggle Prepaid Ocean is a leading fintech player in spend management (representative)
New Delhi:
Equity investors are gearing up for a new public offering set to hit the Indian markets this week: the Zaggle Prepaid Ocean IPO (initial public offering).
Zaggle Prepaid Ocean is a leading fintech player in spend management, with more than 50 million prepaid cards issued in collaboration with banking partners and serving more than 2.27 million users, as of March 31, 2023.
If you’re considering subscribing to the issue, here are some important details you need to know.
Important data
The Zaggle Prepaid Ocean Services IPO opens for subscription on Thursday, September 14 and closes on Monday, September 18. The anchor investors’ bid will take place on September 13.
The finalization of the basis for allotment of shares will take place on September 22, redemptions should take place on September 25 and the shares are likely to be listed on the stock exchange on September 27.
IPO details
Zaggle Prepaid Ocean Services has priced its IPO at Rs 156-164 per equity share of face value of Re 1 each. The lot size is 90 shares. This means that investors must bid for a minimum of 90 shares and then in multiples of 90.
At the higher end of the price range, the company plans to raise Rs 564 crore through its IPO.
The IPO includes a fresh issue of shares worth Rs 392 crore and an offer for sale (OFS) of 10.45 million shares by eight shareholders.
The selling shareholders include company 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.
Up to 75 percent of the shares in the IPO are reserved for qualified institutional buyers (QIB), 15 percent for non-institutional investors (NII) and 10 percent are reserved for retail investors.
Zaggle has said it would use the net proceeds from new issues for customer acquisition and retention, to the tune of Rs 300 crore. Around Rs 40 crore will be invested in product and technology development till 2026.
The company will also repay its debt of Rs 17.08 crore through the fresh issue money and the remaining amount will be used for general corporate purposes.
