Zaggle Prepaid allots 11.36 mn shares worth Rs 595 cr to QIBs; shares up 4%

Zaggle Prepaid: Bank of India ELSS Tax Saver, Societe Generale - ODI, ICICI Prudential Technology Fund, and Nuvama Enhanced Dynamic Growth Equity are among the key QIB allottees

Zaggle Prepaid share: Zaggle Prepaid shares rose 4 per cent to Rs 551.5 per share on the BSE in Tuesday’s intraday trade. The rise in the share price came after the company successfully completed its fundraising programme via qualified institutional placement (QIP). 

On Monday, the Special Purpose Committee of the board of directors concluded the QIP and approved the allotment of equity shares at Rs 523.2 per share.

  "The Special Purpose Committee of the board of directors has approved the allotment of 1,13,69,282 equity shares of face value Re 1 each to eligible qualified institutional buyers at the issue price of Rs 523.20 per equity share (including a premium of Rs 522.20 per equity share), which reflects a discount of Rs 27.53 (i.e., 5 per cent) on the floor price of Rs 550.73 per equity share, aggregating to Rs 594.841 crore pursuant to the Issue," the company said in its stock exchange filing. 

Post the QIB allotment, the paid-up equity share capital of the company has increased from Rs 12,28,35,933 to Rs 13,42,05,215.

  Among the key allottees, Zaggle Prepaid issued 1,911,314 shares (16.71 per cent of the issue) to Bank of India ELSS Tax Saver; 1,051,221 shares (9.2 per cent) to Societe Generale – ODI; 764,525 shares (6.7 per cent) to ICICI Prudential Technology Fund; and 764,525 shares (6.7 per cent) to Nuvama Enhanced Dynamic Growth Equity.

  Zaggle Prepaid Ocean Services is a tech-based product and services provider, providing a variety of SaaS solutions, such as expenses, payments, and rewards management software, to clients across banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and automobile industries.

  Its clientele includes Pepsico, ITC, Tech Mahindra, Tata Power, Wipro, LTTS, AirBnB, Bridgestone, Yokohama, Volvo, PNB Met Life, and Cyient among others.

  Recently, on December 18, 2024, Zaggle Prepaid informed the stock exchanges that it has entered into an agreement with Narayana Hrudayalaya Limited.

  Zaggle would provide Narayana Hrudayalaya Limited the Zaggle Save (Employee expense management & benefits) till March 31, 2027.

  Earlier, on December 9, it entered into an agreement with HDFC Bank wherein the HDFC Credit cards will be bundled with Zaggle Software, which will be offered to corporate customers across industries.

  The agreement is for a period of three years.

  In the July-September (Q2) quarter of the current financial year, the company's consolidated profit climbed 145 per cent to Rs 18.56 crore as compared to Rs 7.59 crore a year ago.

  The consolidated revenue from operations increased 64.2 per cent to Rs 303 crore, and earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 77.7 per cent to Rs 26.71 crore. The company's Ebitda margins expanded 50 basis points (bps) to 8.8 per cent year-on-year.