scorecardresearchZaggle Prepaid files IPO papers with SEBI: All you need to know

Zaggle Prepaid files IPO papers with SEBI: All you need to know

Updated: 21 Dec 2022, 02:41 PM IST
TL;DR.
  • Promoters who are offloading their shares include Raj P Narayanam, Avinash Ramesh Godkhindi, VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, and Ventureast Trustee Company Pvt Ltd.
Zaggle Prepaid Ocean Services IPO to be listed on NSE and BSE

Zaggle Prepaid Ocean Services IPO to be listed on NSE and BSE

Hyderabad-based fintech company Zaggle Prepaid Ocean Services Ltd has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The IPO comprises a fresh issue of shares worth 490 crore and an offer for sale of 10,526,316 equity shares.

The equity shares have a face value of 1 rupee each.

Promoters who are offloading their shares include Raj P Narayanam, Avinash Ramesh Godkhindi, VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, and Ventureast Trustee Company Pvt Ltd.

The net proceeds from the fresh issue will be utilised towards funding customer acquisition and retention, development of technology and products, repayment or prepayment of loans, and general corporate purposes.

According to Frost & Sullivan report, the company is a leading player in spend management, with a differentiated value proposition and diversified user base.

Incorporated in 2011, it operates in the business-to-business-to-customer segment, and is among a small number of uniquely positioned players with a diversified offering of financial technology or 'fintech' products and services. It has one of the largest numbers of issued prepaid cards in India in partnership with its banking partners.

According to DRHP, the company's net profit ratio/margin increased by 40.07 percent to 11.29 percent in fiscal 2022 from 8.06 percent in fiscal 2021, primarily due to significant scale-up in the business during the year. This resulted in higher number of customers and users and resultant higher proportions of fee revenue, whereas the costs remained lower.

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

 

Article
IPOs are the first issues of the stakes of a company whereas FPOs are generally the additional issues.
First Published: 21 Dec 2022, 02:41 PM IST