Business spend management platform Zaggle Prepaid Ocean Services' maiden public issue has been subscribed 19 percent, with bids for 36.87 lakh equity shares against offer size of 1.93 crore shares on September 14, the first day of bidding.
The company intends to raise Rs 563.38 crore via the IPO, which has a fresh issue component of Rs 392 crore, and an offer-for-sale (OFS) portion of 1.04 crore shares worth Rs 171.38 crore at the upper price band.
Further, 75 percent of the offer size has been reserved for qualified institutional buyers (QIBs) including anchor book, which was fully subscribed on September 13, a day before the issue opening. The remaining 15 percent portion is reserved for high networth individuals (HNIs) and the 10 percent for retail investors.
Retail investors have bought 87 percent shares of their portion and that of HNIs (non-institutional investors) 11 percent, while QIBs are yet to show their interest in the IPO.
Also read: Zaggle Prepaid Ocean Services IPO: 10 things to know before subscribing to the Rs 563 crore issue
The price band for the offer, which closes on September 18, is Rs 156-164 per share.
Zaggle, which offers fintech and SaaS products & services to corporates in banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and automobile industries, has already mobilised Rs 253.52 crore by issuing 1.54 crore equity shares to 23 anchor investors on September 13.
Marquee investors including Morgan Stanley Asia (Singapore), Matthews Asia Funds, Copthall Mauritius Investment, Societe Generale, Goldman Sachs, ICICI Prudential, LIC Mutual Fund, Abakkus Diversified Alpha Fund, and Elara India Opportunities Fund participated in the anchor book.
The customer acquisition and retention at a cost of Rs 300 crore, development of technology and products for Rs 40 crore, and repaying debts worth Rs 17.08 crore will be done via net fresh issue proceeds.
Click Here To Read Moneycontrol's Exclusive Research Note on Zaggle IPO
Zaggle, which operates in a segment where it interacts and interfaces with customers (businesses) and end users (employees), has reported consolidated net profit of Rs 22.9 crore on revenue of Rs 553.46 crore for the financial year ended March FY23.
With having a relationship with several corporate brands like TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL (RP – Sanjiv Goenka Group), Hiranandani group, Cotiviti and Greenply Industries, the company claimed to be the leading player in spend management, with more than 5 crore prepaid cards issued in partnership with banking partners and more than 0.23 crore users served, as of March 2023.
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