Zaggle Prepaid Ocean Services Limited IPO – Price, Lot size, Open date, GMP & Review

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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.

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.

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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

(Source: RHP)

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.