Zaggle Prepaid Ocean Services debuts at a price of Rs 164 per share on the NSE

Zaggle Prepaid Ocean Services Limited is engaged in the business of providing fintech solutions to manage corporate business expenses through automated and innovative workflows. The stock debuted at a discount, opening at Rs 162 per share on the BSE. On the NSE, the stock opened at Rs 164, marking a flat opening from its initial public offering price of Rs 164 per share.  

As of the time of writing, the stock is trading at Rs 167 on the BSE, with intraday highs and lows of Rs 170.70 and Rs 156.30, respectively. The current market capitalization of the company stands at Rs 2043 Crore.  

The company plans to primarily utilise the proceeds from the new issue for the acquisition and retention of new customers, the development of technology and products, repayment of the company’s borrowing in full or in part, and for general corporate purposes.   

Company profile  

Incorporated in 2011, Zaggle Prepaid Ocean Services Limited provides financial technology (fintech) products and services to manage corporate business expenses through automated and innovative workflows.  

The company offers fintech and SaaS products and services to corporations operating in the fields of banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and the automobile industries.   

The SaaS platform is designed for, business spend management (including expense management and vendor management, rewards and incentives management for employees and channel partners; and gift card management for merchants, referred to as the Customer Engagement Management System (CEMS). 

Let’s recap the subscription history of the company: 

On the final day of the IPO window on September 18, 2023, the IPO witnessed a subscription rate of 12.86 times. The public issue received a good response, with the retail category being subscribed 6.15 times, the QIB category achieving a subscription rate of 16.94 times, and the NII category reaching a subscription rate of 9.16 times. 

The company had attracted Rs 253.52 crore from various anchor investors, allocating 1.54 crore equity shares at Rs 164 per share to anchor investors. 

The IPO price range was set between Rs 156 and Rs 164, with a face value of Rs 10 per share and a lot size of 90 shares. The total size of the company’s IPO was Rs 563.38 Crore, and the final share issue price was fixed at Rs 164 each.   

Following is the financial performance of the company:   

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions, the broader indices have slipped from their all-time high levels but are sustaining today. Investors who applied for listing gains have not gained anything and may consider closing their positions. 

On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which is beneficial.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.