Zaggle Prepaid Ocean Services IPO Closed: Oversubscribed 12.57x On Day 3; Latest GMP Here

Zaggle Prepaid Ocean Services IPO: The fintech's Rs 563.4 crore worth IPO oversubscribed by 12.57 times on the last day of the issue. The IPO received strong demand from qualified institutional buyers followed by impressive bidding from non-institutional and retail investors as well. The company had launched its IPO from September 14th to 18th for subscriptions.

As per the data on NSE, on Day 3, the IPO received cumulative bids of 24,28,83,090 equity shares, compared to offered size of 1,93,26,761 equity shares, subscribing by 12.57 times.

The retail portion subscribed by 5.94 times of the allocated shares to the category, while non-institutional investors subscribed 8.85 times of the reserved portion. Meanwhile, the qualified institutional buyers with a robust appetite subscribed the IPO by 16.73% against their reserved size on Day 3.

Of the total IPO size, 75% of the shares are reserved for QIBs, while 15% is for NIIs, and the rest of the 10% is kept for RIIs.

Currently, the grey market premium of the IPO is at Rs 12 per share on September 19. As per TopShareBrokers, with the price band of 164.00, Zaggle Prepaid Ocean Services IPO's estimated listing price is ₹176 (cap price + today's GMP).The expected percentage gain/loss per share is 7.32%.

The company's 100% book-building IPO opened on September 14, and closed for subscription on September 18.

The IPO comprised Rs 392 crore worth of fresh issue of equity shares and offer for sale (OFS) aggregating to Rs 171.4 crore.

The price band of the IPO is fixed at Rs 156 apiece to Rs 164 having a face value of Re 1 each. The bid lot size is 90 Equity Shares and in multiples thereof.

Book-running lead managers for the IPO were -- ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial. While KFin Technologies is the registrar.

The company plans to utilise the proceeds of the fresh issue for customer acquisition and retention, technology and product development (Rs 40 crore) from FY24 to FY26, and debt repayment (Rs 17.1 crore). The remaining funds will be allocated for general corporate purposes.

Founded in 2011, the company is among a small number of uniquely positioned players with a diversified offering of fintech products and services, having one of the largest number of issued prepaid cards in India in partnership with certain of our banking partners (which constituted approximately 16.0% of India's total prepaid transaction volume, as of March 31, 2023), a diversified portfolio of SaaS, including tax and payroll software, and a wide touchpoint reach.

After the IPO, now the focus will shift to the allotment of shares which is expected to take place on September 22, followed by initiation of refunds on September 25, credit of shares to demat accounts on September 26. Accordingly, as per Chittorgarh, the listing of the IPO is expected to be on September 27.