The fintech sector of India is being seen as a trailblazer for the world, especially after the visuals of foreign dignitaries using our flagship UPI during the G20 meetings. This is set to provide a huge boost to the sector in the coming days and the newest IPO offering belongs to this sector too in the form of Zaggle Prepaid Ocean Services Limited IPO.
Zaggle Prepaid Ocean Services Limited IPO will open for subscription from 14th September 2023 to 18th September 2023.
Here are all the important details of Zaggle Prepaid Ocean Services Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
Read More: Building a Fintech business in India – Challenges and Opportunities
IPO Details
The key details of Zaggle Prepaid Ocean Services Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 14th September 2023 |
| IPO Closing Date | 18th September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 1 per share |
| IPO Price Band | Rs. 156 – Rs. 164 per share |
| IPO Size | Rs. 563 crores |
| Offer for Sale | Rs. 171 crores |
| Fresh Issue | Rs. 392 crores |
- IPO Dates
The important dates for Zaggle Prepaid Ocean Services Limited IPO are highlighted below:
| Event | Date |
| Opening date | 14th September 2023 |
| Closing Date | 18th September 2023 |
| Allotment date | 22nd September 2023 |
| Refund Date | 25th September 2023 |
| Share Credit Date | 26th September 2023 |
| Listing Date | 27th September 2023 |
- IPO Lot Sizes
Investors can subscribe to Zaggle Prepaid Ocean Services Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lotMaximum – 13 lots |
| Investment amount | Minimum – Rs. 14,040 – 14,760Maximum – Rs. 1,91,880 |
| Shares | Minimum – 90Maximum – 1170 |
- IPO Reservation
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investor | 10% |
| QIB (Qualified Institutional Buyer) | 75% |
| NII (Non-Institutional Bidders) | 15% |
Zaggle Prepaid Ocean Services Limited IPO Objectives
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below,
- The proceeds will be used for expenditure towards customer acquisition and retention as well as for the development of technology and products.
- The proceeds will be used for repayment, prepayment or redemption in part or in full of a few borrowings availed by the company and its subsidiaries including payment of the interest accrued thereon.
- The balance proceeds from the IPO will be used for general corporate purposes.
Top things to know about Zaggle Prepaid Ocean Services Limited IPO
Zaggle Prepaid Ocean Services Limited is a fintech enterprise established in 2011 and specialises in innovative financial technology (fintech) products and services designed to streamline corporate expenditure management through automated workflows.
Zaggle Prepaid Ocean Services Limited primarily caters to corporate clients spanning various sectors, including banking, technology, healthcare, manufacturing, FMCG, infrastructure, and automobiles, by delivering fintech and Software-as-a-Service (SaaS) solutions. The products offered by the company are mentioned here,
- Propel – A corporate SaaS platform tailored for the management of channel rewards, incentives, and employee recognition.
- Save – A SaaS-based platform and mobile app that simplifies business expense management, enabling digital employee reimbursements and tax benefits.
- CEMS (Customer Engagement Management System) – A comprehensive system for merchants to oversee customer experiences, encompassing gift card and loyalty benefits.
- Zaggle Payroll Card – A prepaid payroll card offering an alternative payment solution for contractors, consultants, seasonal employees, temporary workers, and unbanked wage earners.
- Zoyer – An integrated, data-driven, SaaS-based platform for business spend management, featuring automated finance capabilities within core invoice-to-pay workflows.
As of fiscal year 2023, Zaggle Prepaid Ocean Services Limited has marked significant achievements, boasting a workforce of over 250 professionals, a presence across 7 offices in India, a clientele exceeding 1,750 companies, and serving the needs of over 1.7 million end users. The company’s role in the fintech sector is underscored by its utilization of cutting-edge technologies to provide comprehensive solutions for corporate expense management, rewards programs, and customer engagement, as evidenced by its diverse client portfolio and substantial user base.
Is Zaggle Prepaid Ocean Services Limited profitable – Know the financial performance of Zaggle Prepaid Ocean Services Limited
Zaggle Prepaid Ocean Services Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations (Rs. in cr) | Profit After Tax (Rs. in cr) | Basic EPS |
| Mar-2023 | 235 | 554 | 22 | Rs.2.48 |
| Mar-2022 | 93 | 372 | 42 | Rs.4.57 |
| Mar-2021 | 62 | 240 | 19 | Rs.2.11 |
What are the strengths of Zaggle Prepaid Ocean Services Limited?
Some of the key strengths of Zaggle Prepaid Ocean Services Limited IPO that investors can take note of are
| Category | Details |
| Business model | Zaggle Prepaid Ocean Services Limited’s distinct SaaS-based fintech platform seamlessly integrates payment solutions, a mobile application, and API connections, while also leveraging internally developed technology and a strong network effect.With a business model characterized by diverse revenue streams and cost-effective customer acquisition and retention, the company sustains a varied client base across sectors, supported by valuable banking and merchant partnerships. |
| Other merits | Zaggle Prepaid Ocean Services Limited leads the way in innovative fintech solutions for corporate excellence, thanks to its proficient workforce and the guidance of an experienced management team with deep domain expertise. |
What is the risk of investing in Zaggle Prepaid Ocean Services Limited IPO?
Here are some of the risks that investors of Zaggle Prepaid Ocean Services Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company’s recent revenue growth rates may not accurately predict future financial performance due to its limited operating history at the current scale.There is a risk of customer retention and attraction, converting beta or trial users into paying customers and expanding product usage within customer organizations, alongside potential challenges in product adoption due to the need for successful integration with other software applications. |
| Other concerns | The absence of industry peers complicates the ability to benchmark and evaluate the company’s financial performance in comparison to similar operators in the industry.The company faces the potential negative consequences of its products not seamlessly integrating with other software applications, which could hinder adoption and usage, and it also relies on third-party payment networks, channel partners, and providers for critical operational aspects, with disruptions in these relationships posing risks to its business, financial well-being, and performance |
What is the Grey Market Premium (GMP) of Zaggle Prepaid Ocean Services Limited?
As of September 14th, 2023, the grey market premium for the shares of Zaggle Prepaid Ocean Services Limited IPO is Rs. 36 as per market observers. This means the shares are expected to list at a premium of Rs. 36 over the listing cap price of Rs. 164.
Is Zaggle Prepaid Ocean Services Limited IPO safe for investment?
Zaggle Prepaid Ocean Services Limited is a strong payer in the fintech sector with a diverse range of products. This company has shown improved revenue from operations but reduced net profits in FY 2023. While the sector is set to see huge overall investments, it is important to review the company’s performance and evaluate it with industry standards before making an investment decision.
How to apply for Zaggle Prepaid Ocean Services Limited IPO?
Investors can invest in this IPO through the Fisdom app.
