Zaggle’s IPO Subscription Opens: Fintech Player Eyes Investment Inflows

Zaggle's IPO Subscription Opens: Fintech Player Eyes Investment Inflows

VoM News Desk | September 10, 2023 | 02:55 PM IST | Breaking News | Follow on Google News

Zaggle’s IPO Subscription Opens: Fintech Player Eyes Investment Inflows. Image/Mint

Three-Day IPO Subscription Begins, Anchors Bidding on September 13

Zaggle Prepaid Ocean Services Ltd is embarking on its initial public offering (IPO), with a subscription window spanning three days, from September 14 to September 18. Anchor investors will be able to bid starting from September 13. This development follows the release of the red herring prospectus (RHP) on Friday.

Revised Issue Size

Zaggle has revised the size of its fresh issue, reducing it from ₹490 crore to ₹392 crore. This adjustment comes after the company conducted a pre-IPO placement in two phases in August, successfully raising ₹98 crore from investors. Consequently, the size of the fresh issue has been revised down to ₹392 crore.

Offer for Sale (OFS) Adjustment

The Offer for Sale (OFS) component of Zaggle’s IPO has been slightly adjusted as well. It was reduced from 1.05 crore equity shares to 1.04 crore shares after one of the selling shareholders exited the issue, as outlined in the RHP. The OFS consists of up to 1.04 crore equity shares held by promoters Raj P Narayanam and Avinash Ramesh Godkhindi. Other selling shareholders include VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, Ventureast Trustee Company, Zuzu Software Services Pvt Ltd, and Koteswara Rao Meduri.

About Zaggle

Zaggle, established in 2011, operates in the business-to-customer segment. It has carved a unique niche in India by providing a comprehensive solution for spend management through prepaid cards and employee management. The equity shares offered by the company will be listed on both the BSE and NSE. The book-running lead managers for the IPO are ICICI Securities Ltd, Equirus Capital Private Ltd, IIFL Securities Ltd, and JM Financial Ltd.

Utilization of Raised Capital

Zaggle intends to use the raised capital strategically. A significant portion, ₹300 crore, will be allocated towards customer acquisition and retention efforts. Additionally, up to ₹40 crore is earmarked for the development of technology and products, while a sum of up to ₹17.08 crore will be utilized to reduce existing debt.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.