Zaggle Prepaid Ocean Services IPO will go live on Thursday, 14th September 2023. If you’ve been waiting to invest in this IPO, your wait is over. Zaggle is offering equity shares aggregating up to ₹3,920 million.
It’s quite important to go through the Red Herring Prospectus (RHP) which the company has filed. It will help you understand crucial details about the company and guide you to make informed investment decisions. But, not everyone may have the time to go through a lengthy document.
You can give this blog a quick read. The important details are all mentioned here.
Also Read: How does an IPO work?
Table of Content
IPO Details
Check the key details of Zaggle Prepaid Ocean Services:
| IPO Open Date | September 14, 2023 |
| IPO Close Date | September 18, 2023 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs. 1 per share |
| Price Band | Rs. 156 to Rs. 164 per share |
| Minimum Lot Size | 90 shares |
| Total Issue Size | 34,352,255 shares (aggregating up to Rs. 563.38 crore) |
| Fresh Issue | 23,902,439 shares(aggregating up to Rs. 392.00 crore) |
| Offer for Sale | 10,449,816 shares of Rs. 1(aggregating up to Rs. 171.38 crore) |
| Listed on | BSE and NSE |
About the Company
Zaggle Prepaid Ocean Services Limited was founded in 2011 and is a major player in spend management with a diversified user base and differentiated value proposition. It offers a combined solution for spend management through prepaid cards, employee management and gift card management through its SaaS platforms.
Zaggle has succeeded in creating a unique position for itself in the B2B2BC segment (business-to-business-customer). With a diverse range of fintech products and services, Zaggle has forged ahead of its competitors.
The company boasts of having the largest number of prepaid cards in the country, a diverse SaaS portfolio including payroll and tax filing tools and an extensive touchpoint reach. It is uniquely placed at the cross-section of the SaaS and fintech ecosystem. Their SaaS platform caters to business spend management, including customer engagement management systems, expense management and rewards and incentives management systems.
Zaggle mostly caters to corporates, start-ups, and small and medium-sized businesses across India. The company effectively combines its unified SaaS-based platform with a comprehensive product stack that digitises both business and employee spending management along with rewards for businesses.
Offerings of Zaggle also include various payment instruments such as Kuber Gift Card, Zaggle Payroll Card, and Zinger Multi-wallet card. Zaggle Prepaid Ocean Services Limited also lets businesses, employees, customers, and channel partners create a network effect with one another.
Also Read: IPO investment strategy: Tips for investing in an IPO
IPO Tentative Timeline
The tentative timeline of the Zaggle Prepaid Ocean Services IPO is given below:
| IPO Open Date | Thursday, September 14, 2023 |
| IPO Close Date | Monday, September 18, 2023 |
| Cut-off time for UPI mandate confirmation | 5 p.m. on September 18, 2023 |
| Basis of Allotment | Friday, September 22, 2023 |
| Initiation of Refunds | Monday, September 25, 2023 |
| Credit of Shares to Demat Accounts | Tuesday, September 26, 2023 |
| Listing Date | Wednesday, September 27, 2023 |
IPO Lot Size
Check the details of Zaggle Prepaid Ocean Services IPO:
| Applications | Lots | Shares | Amount |
| Retail (min) | 1 | 90 | Rs. 14,760 |
| Retail (max) | 13 | 1,170 | Rs. 1,91,880 |
| S-HNI (min) | 14 | 1,260 | Rs. 2,06,640 |
| S-HNI (max) | 67 | 6,030 | Rs. 9,88,920 |
| B-HNI (min) | 68 | 6,120 | Rs. 10,03,680 |
Strengths of Zaggle Prepaid Ocean Services Limited
Check the qualitative factors of Zaggle Prepaid Ocean Services Limited:
- The company has an advanced SaaS-based fintech platform and offers its customers a combination of mobile applications, payment instruments, and API integrations.
- The company boasts of a strong business model with diverse revenue sources and low costs of customer acquisition and retention.
- Zaggle Prepaid Ocean Services enjoys diversified customer relationships across various sectors with preferred merchant and banking partnerships.
- The company has a highly experienced management team which is supported by a competent workforce.
Risks Involved
Don’t forget to take into account the risks involved with the company:
- The company has limited experience in operating at its current scale. If Zaggle fails to manage its growth opportunities well, it can hurt its business.
- The company might fail to attract and retain customers. It may even fail to convert people to paying customers using its beta or trial versions.
- If Zaggle’s relationship with its banking partners discontinues, there might be an adverse impact on its entire business.
Also read: How is an IPO valued?
Company Financials
Check the company’s key financials below:
| Particulars | For the Financial Year Ending (in Rs. million) | ||
| March 31, 2023 | March 31, 2022 | March 31, 2021 | |
| Total Assets | 2,347.59 | 926.53 | 620.80 |
| Total Liabilities | 1,860.08 | 962.11 | 1,076.31 |
| Total Expenses | 5,229.40 | 3,204.86 | 2,220.95 |
| Total Revenue | 5,545.75 | 3,716.64 | 2,402.93 |
| Profit After Tax | 229.01 | 419.21 | 193.30 |
| EBITDA | 480.96 | 598.54 | 276.27 |
Why Should You Invest?
Zaggle caters to businesses of all ranges such as corporates, SMBs, and start-ups. When business owners wish to empower their teams with the best in class finances, they consider Zaggle Prepaid Ocean Services Limited. TATA Capital, TATA Steel, Greenply, and IndusInd Bank are some of the entities with whom Zaggle has shared a working relationship.
Summary
If you’re interested in investing in the Zaggle Prepaid Ocean Services IPO, go through the details provided above. Investing in this company may prove to be beneficial in the long run, so make your decision with care. Don’t forget to check whether your risk appetite is aligned with the risks involved with investing in this IPO.
