Zaggle Prepaid Ocean Services IPO Subscribed 12.57 Times On Final Day

September 18, 2023

Exciting News for Investors as Zaggle's IPO Draws Massive Interest

The Zaggle Prepaid Ocean Services Ltd. IPO, which was launched on September 14, has garnered significant attention from investors. As of 06:24 p.m. on the final day of subscription, the IPO has been subscribed an impressive 12.57 times.

The Journey So Far
Zaggle Prepaid Ocean Services Ltd., a fintech product and solution provider, initiated its IPO with the aim of raising Rs 392 crore through a fresh issue. The IPO witnessed moderate subscription levels of 19% on the first day and 43% on the second day. However, as the offering entered its final day, it saw a remarkable surge in investor interest, ultimately reaching a subscription rate of 12.57 times.

IPO Details
The IPO involved a fresh issue and an offer for sale (OFS) of 1.04 crore equity shares. The price band for the shares was set at Rs 156–164 per share. Notably, the company had earlier planned to raise Rs 490 crore, but it adjusted the offering size to Rs 392 crore following two pre-IPO placements in August, which brought in Rs 98 crore from investors.

The OFS portion of the offering was reduced slightly from 1.05 crore equity shares to 1.04 crore shares due to the withdrawal of one selling shareholder.

Subscription Breakdown
Out of the total IPO size, 75% was reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail individual investors.

QIB Subscription: 16.73 times
Non-Institutional Investors: 8.85 times
Retail Investors: 5.94 times

About Zaggle Prepaid Ocean Services Ltd.
Zaggle Prepaid Ocean Services Ltd., incorporated in 2011, offers a diverse range of fintech products and services. The company has made a significant impact in India, providing a comprehensive solution for spend management through prepaid cards and employee management through software-as-a-service.

With numerous issued prepaid cards in India through banking partnerships, Zaggle represented approximately 16% of the country's total prepaid transaction volume as of March 31.

The company's core portfolio includes:

Propel: A streamlined SaaS platform for incentives and recognition.
Save: A software-as-a-service (SaaS) platform and a mobile application designed for managing business expenditures efficiently.
CEMS: A customer engagement management system for merchants.
Zaggle Payroll Card: A prepaid payroll card facilitating payments to contractors, consultants, and employees.
Zoyer: A comprehensive, data-powered, software-as-a-service platform for effective business expenditure management.
Zakey: A contactless payment system.

As of March 31, the company boasted 22 lakh users and 5 crore co-branded prepaid cards. Primary collaborators encompass Yes Bank Ltd., IndusInd Bank Ltd., along with Visa and DBS.

What's Next?
The Zaggle Prepaid Ocean Services Ltd. IPO, with its impressive subscription numbers, indicates strong investor confidence in the company's prospects. As the IPO concludes, all eyes are on its future performance in the market.

Please note that investment decisions should be made after consulting with certified financial experts.

IPO Details
Issue Opening Date: September 14
Issue Closing Date: September 18
Fresh Issue Size: Rs 392 crore
OFS Size: 1.04 crore equity shares
Price Band: Rs 156–164 per share
Minimum Lot Size: 90 shares
Listing: NSE, BSE