Introduction
The Zaggle Prepaid Ocean Services IPO, open for subscription from September 14 to September 18, has caught the attention of investors with its unique value proposition. Priced between ₹156 to ₹164 per equity share, this IPO aims to raise ₹563.38 crores. Notably, it garnered ₹253.52 crore from 23 anchor investors at the upper price band of ₹164 per share.
Investor Allocation
The IPO has allocated shares as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Investors. With a floor price of 156 times the face value and a cap price of 164 times the face value, it’s a closely watched offering.
Financial Overview
Zaggle, a fintech company, reported total revenues of ₹371.66 crores for the fiscal year ending March 31, 2022. As of March 31, 2023, its assets amounted to ₹234.76 crores, while revenue stood at ₹554.58 crores. A profit after taxes of ₹22.90 crores contributed to the net worth of ₹48.75 crores, supported by reserves and a surplus of ₹39.36 crores. However, the company’s financial journey includes periods of losses, with a profit after tax of ₹338.59 crores as of March 31, 2023.
Subscription and Expert Views
On day 1 of the IPO, the subscription status reached 19%, with the Retail Investors portion witnessing a substantial 87% subscription. According to experts, the IPO appears to be aggressively priced, with an Adj. P/E of 54.3x (FY23) at the upper price band. Nevertheless, the company’s unique business model and growth potential have garnered interest. The grey market premium (GMP) is currently at +36, suggesting strong investor appetite.
Conclusion
The Zaggle Prepaid Ocean Services IPO presents a distinctive opportunity in the fintech sector. While the pricing may appear ambitious, experts suggest that well-informed investors could consider it for potential medium to long-term rewards. With a diverse clientele, stable revenue growth, and promising expansion initiatives, Zaggle is making waves in the digital payments industry. Despite the caution due to the high valuation, it’s an IPO worth watching closely as it could offer intriguing prospects in the ever-evolving fintech landscape.
(Disclaimer:-The information provided on this channel is for education and information purpose only. This is not to be considered advice or recommendation of any kind. Investing in the stock market is subject to market risk. I am not a registered advisor. Please do your own research and consult your financial advisor before investing.)
