Zaggle Prepaid Ocean Services Sets IPO Price, Plans for Growth

Zaggle Prepaid Ocean Services, a fintech company, has priced its initial public offering (IPO) at Rs 156-164 per share, which is significantly higher (156-164 times) than the face value. The IPO, opening on September 14, comprises a fresh issue of equity shares worth up to Rs 392 crore and an offer for sale (OFS) by promoters and external investors, totaling up to Rs 174 crore.

After the IPO, promoters will hold around 42% of the equity, while selling shareholders will collectively reduce their holdings by just over 8%.

The founders and promoters, Raj P Narayanam and Avinash Ramesh Godkhindi, will sell a small fraction of their holdings (0.02% each). External investors, including VenturEast Proactive Fund and GKFF Ventures, will also divest portions of their stakes.

Foreign funds and non-family shareholders together own 15% of the company before the IPO.

In FY22, the company reported revenue of Rs 370 crore, with a net income of Rs 40 crore. In FY23, revenue increased to Rs 550 crore, but net income decreased to Rs 23 crore due to additional expenses related to the employee stock option plan.

Most of Zaggle's revenue (two-thirds) comes from external commercial channels, while the rest is from employee channels. The company plans to allocate Rs 300 crore from the IPO proceeds for customer acquisition and retention.

ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial are the book running lead managers for the offer.