The price range for the Zaggle Prepaid Ocean Services IPO’s opening day is 156 to 164 rupees per share. The total goal of the IPO is 563.38 crore.
In the public offering, Zaggle IPO has set aside a maximum of 75% of the shares for qualified institutional buyers (QIB), a minimum of 15% for non-institutional investors (NII), and a minimum of 10% for retail investors.
The floor price for the Zaggle IPO is 156 times face value, and the maximum price is 164 times face value.
According to the Red Herring Prospectus (RHP), neither in India nor abroad are there any listed industry peers for the company.
Modern financial solutions are offered by Zaggle with the intention of helping businesses, startups, and SMEs. The entire revenue recorded by Zaggle for the fiscal year that concluded on March 31, 2022, was 371.66 crores. As of March 31, 2023, its assets were valued 234.76 crores, while its income was 554.58 crores. The profit after taxes of 22.90 crores, which was supported by reserves and a surplus of 39.36 crores, lifted the net worth to 48.75 crores.
It is important to keep in mind that the corporation has had financial ups and downs, as shown by the profit after tax of 338.59 crores as of March 31, 2023, per reports.
Information on the Zaggle IPO
The fresh issue portion of the Zaggle IPO is made up of shares worth 392 crore rupees, while the offer for sale (OFS) portion is made up of 10,449,816 rupee shares that have been sold by promoter selling shareholder Raj P Narayanam, Avinash Ramesh Godkhindi, and other selling shareholders for a total of 171.38 crore rupees. The entire issue size for the Zaggle IPO is 563.38 crores.
The firm intends to use the net proceeds from the offering to pay for expenditures associated with client acquisition and retention, the development of new products and technologies, general corporate costs, and the full or partial repayment of various borrowings that the company has already taken out.
The book running lead managers for the Offer are ICICI Securities Limited, Equirus Capital Private Limited, IIFL Securities Limited, and JM Financial Limited. The registrar of the offer is Kfin Technologies Ltd.
The subscription rate for the Zaggle IPO as of the first day was 3%. 13% of retail individual investors were subscribed.
IPO Review for Zaggle
Dilip Davda, a contributing editor at Chittorgarh, claims that the business is a unique participant in fintech products and related services with a broad range of products and services. Though the IPO seems to be overpriced, the company is attempting to justify the premium with its distinctive business strategy. But savvy investors might reserve money for medium- to long-term gains.
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Zaggle is one of the most feature-rich consumer solutions because it combines a variety of capabilities into a single platform, according to domestic brokerage firm Choice Equity Broking Pvt Ltd. The top line of the business has increased significantly. The launch of its new platform, “Zoyer,” and ongoing attempts to expand its customer base have given the company a bright future.
There are no other publicly listed companies, both in India and overseas, that conduct operations similarly to that of Zaggle, according to the company’s RHP. However, the company’s P/E multiple at a higher price range, after accounting for post-IPO fully diluted paid-up equity, comes out to 87.4x (to its FY23 EPS of Rs. 1.9), which seems to be aggressively priced. As a result, we assign ‘Subscribe with caution’ rating to this issue, according to a report by Choice Equity brokerage.
The Zaggle IPO is offered at an Adj. P/E of 54.3x (FY23), which seems to be aggressively priced, at the upper price band of 164, according to Geojit Financial Services Ltd. But a variety of factors, including a diverse clientele encompassing a range of industries, consistent revenue growth over time, the company’s expansion plans, a diversified revenue model, and the expanding digital payments sector, all contribute to its appeal.
According to the brokerage, “Given these factors, we recommend a ‘Subscribe’ rating for the issue on a short- to medium-term basis.”
Today’s IPO GMP for Zaggle Prepaid Ocean Services
Today’s grey market premium for the Zaggle IPO is +36, which is the same as the previous trading session.
The expected listing price of Zaggle shares is 200 per share, which is 21.95% more than the IPO price of 164 when taking into account the upper end of the IPO pricing band and the present premium in the grey market.
According to topsharebrokers.com, the Zaggle IPO GMP on Tuesday was 0, meaning that shares were trading at their 164 issue price with no premium or discount.
Investors’ willingness to pay more than the issue price is indicated by the term “grey market premium.”