Zaggle Prepaid Ocean Services IPO: Technology-Fintech company IPO to begin from September 14; Key Details here

Team Updater September 12, 2023
Zaggle Prepaid Ocean Services is into Technology-Fintech and is looking raise funds through Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 392 crores and an Offer for Sale up to 10,449,816 Equity Shares.

Zaggle Prepaid Ocean Services is into Technology-Fintech and is looking raise funds through Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 392 crores and an Offer for Sale up to 10,449,816 Equity Shares.


IPO
Zaggle Prepaid Ocean Services to raise around Rs 555 crores through public issue

Zaggle Prepaid Ocean Services IPO is a public offering of shares by Raj P Narayanam and Avinash Ramesh Godkhindi. The IPO will open on September 14 and will close on September 18. The price band is ₹156 to ₹164 per share and the lot size is 90 shares. The issue size is ₹563.4 crore. The shares are expected to be listed on NSE, BSE on September 27 (^). Some additional information that you may find useful are: Company's customer base is divided into corporate accounts/SMB accounts with total of 1832/579 customers in FY23 (v/s 1318/435 and 797/295 customers in FY22 and FY21 respectively): (**) - based on higher price band (^) indicative date


Promoters of the company are Raj P Narayanam and Avinash Ramesh Godkhindi Currently promoters hold 57.91% stake in the company.

Quick Pointers


  • Company aims to raise between Rs 555 to 563 crs through this IPO.
  • The net proceeds of the issue will be utilized to 1) Expenditure towards Customer acquisition and retention amounting to Rs. 300 crores. and 2) Expenditure towards development of technology and products Rs. 40 crores
  • Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 13-Sep-23.
  • Price band for the IPO has been fixed at Rs 156 to 164 per share and bid lot are in multiple of 90 shares. The implied market cap post-issue at Rs 1,924 to 2,002 crs.
  • As per the tentative schedule, allotment date of this IPO is most likely on September 22 and share are expected to be listed on NSE, BSE on September 27.
  • Company does not have any listed industry peers in India or abroad and it may be difficult to benchmark and evaluate peers financial performance against other operators who operate in the same industry of fintech.
  • ICICI Securities, Equirus Capital, IIFL Securities, JM Financial has been appointed as Merchant Banker to the issue. KFin Technologies Ltd. has been appointed as official registrar of the issue.

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About Company

Incorporated in 2011, Zaggle operate in the business-to-business-to-customer (B2B2C) segment where it interact and interface with Customers (i.e., businesses) and end Users (i.e., employees). Company is offering fintech products and services, having issued prepaid cards in India in partnership with certain banking partners, a diversified portfolio of SaaS, including tax and payroll software, and a wide touchpoint reach (Source: Frost & SullivanReport). It is also into spend management, with more than 50 million prepaid cards issued in partnership with banking partners and more than 2.27million users served, as of March 31, 2023.

Zaggle Prepaid Ocean Services is into Technology-Fintech and is looking raise funds through Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 490 crores and an Offer for Sale up to 10,526,316 Equity Shares.

Company's customer base is divided into corporate accounts/SMB accounts with total of 1832/579 customers in FY23 (v/s 1318/435 and 797/295 customers in FY22 and FY21 respectively)

About Industry

India’s fintech ecosystem has grown rapidly and its market revenue is estimated to reach approximately ₹8,341.0 billion in Fiscal 2027 as a result of supporting government policieswhich have fostered a cashless society andrising investments. India hadthe highest fintech adoption rate of 87.0%in Fiscal 2023,compared to other countries. India has the fastest-growing digital payments industry in the world, with a five-fold increase in contactless payments from 2016 to 2021 and the number of businesses accepting contactless payments grewsix-fold from 2018 to 2021. In Fiscal 2022, UPI was expected to account for 86.0% of all consumer paymentsand digital payments from consumers to merchants were expected to reach 1,575.0%growthin Fiscal 2022. India’s digital payments industry is expected to grow at a CAGR of approximately 22.0% from 2023 to 2027. The overall market for spend management software and services (in-house and outsourced; including procurement management, expense management, and payroll management) was estimated to surpass₹200billion by Fiscal 2027, with the share of outsourced spend management estimated to bearound 60.0% during thatperiod (Source: Frost & Sullivan Report).


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