FinTech-SaaS company Zaggle Ocean Services has decided to launch a public offering on September 14, with a probable capital raising plan of around Rs 563 crore.
The initial public offering includes a fresh issue of shares worth Rs 392 crore by the company and an offer for sale of 1,04,49,816 shares by eight selling shareholders, including Raj promoters P Narayanam and Avinash Ramesh Godkhindi.
Other selling shareholders of OFS include VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, Ventureast Trustee Company, Zuzu Software Services and Koteswara Rao Meduri.
Preferential size
The total issue size could go up to Rs 563.38 crore (new issue Rs 392 crore + OFS Rs 171.38 crore) if the offer price is taken as Rs 164 per share, which the company has done currently ahead of its IPO in August 2023. The fintech products and services provider has floated 59.75 lakh pre-IPO shares in August 2023, at a price of Rs 164 per share, or 98 crore Rs. Ace Investor Ashish Rameshchandra Kacholia and Bengal Finance & Investment are the largest investors in the company, each buying 1.86% of the shares through private placement. Accordingly, the size of the new issue has been reduced from Rs 98 crore to Rs 392 crore.
The company has reserved up to 75% of the issue size for qualified institutional buyers and of which 60% can be allocated to anchor investors. Additionally, the remaining 15% and 10% of IPO shares are reserved for high net worth individuals and retail investors, respectively.
Anchor Book will be open for one day on September 13, while the offer will end on September 18. Problem objective
Zaggle, a leading spend management company with a differentiated value proposition and diverse user base, will use proceeds from new issues to attract and retain customers at a cost of 300 billion Rs as well as technology and product development amounting to Rs 40 billion. , for three fiscal years from FY24 to FY26. The company will also repay debt of Rs 17.08 crore through fresh issue funds and the remaining will be for general corporate purposes.
As of March 2023, its total outstanding loans stood at Rs 90.03 crore.
Financial activities
Founded in 2011, Zaggle, which operates in the customer (business) and end-user (employee) communication and engagement segment, recorded a consolidated net profit of Rs 22.9 crore on revenue of Rs 553.46 crore for the financial year ended March FY23. . These figures cannot be compared with figures from previous years but are independent figures. The company claims to be the leading spend management company, with over 5 crore prepaid cards issued in partnership with banking partners and serving over 0.23 crore users, as of March 2023.
Its corporate customer network includes several sectors such as banking and finance, technology, healthcare, manufacturing, consumer goods, infrastructure and the auto industry. It has tie-ups with several corporate brands such as TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL (RP – Sanjiv Goenka Group), Hiranandani Group, Cotiviti and Greenply Industries. As of March 2023, it had 1,832 business accounts and 579 SMB (small and medium business) accounts, with an average number of users per business of 943 users. It has issued 1.08 crore active cards (unexpired as of today) to 2,411 customers across India who used Zaggle’s software to manage employee, business-related expenses , channel partners and their customers. The founders own 57.91% of the company’s shares and the rest is held by the public, including Zuzu Software Services (largest shareholder with 17.8% of capital) and VenturEast Proactive Fund LLC (7, 42%). ICICI Securities, Equirus Capital, IIFL Securities and JM Financial are the investment bankers involved in the issue, while KFin Technologies is the registrar.
