Zaggle Prepaid Share Price Hit Upper Circuit for 2nd Day After Acquisition News

Zaggle Prepaid Ocean Services share price surged 5% for the second straight session on March 28, hitting ₹361.85 per share. The rally comes after the company approved the acquisition of a 45.33% stake in Effiasoft Private Limited.

Acquisition of Effiasoft

On March 27, Zaggle’s board approved the purchase of a 45.33% stake in Effiasoft from its existing shareholders, Koushik Shee and Akula Krishna Rao, for ₹36.72 crore. The board also considered acquiring an additional 5.67% stake from the same shareholders for ₹4.59 crore.

Recent Investment in Mobileware

Earlier this week, Zaggle announced the completion of a 38.34% stake acquisition in Mobileware. This included:

• ₹15.6 crore investment for a 26% stake

• ₹7.25 crore purchase of an additional 12.34% stake from Mobileware’s promoters

Partnership with Omega Healthcare

Zaggle recently partnered with Omega Healthcare Management Services to provide its Zaggle Save platform for employee expense management.

Stock Performance and Outlook

Despite the recent rally, Zaggle’s stock has fallen 30% in the last 3 months, with February marking its worst month since listing in September 2023. Investors reacted negatively to higher operating costs in Q3 FY25, which led to a 21% decline in February.

However, the company remains optimistic about 58-63% revenue growth in FY25 and is actively exploring inorganic growth opportunities for expansion.

Conclusion

While Zaggle Prepaid’s stock has struggled due to rising costs, its recent acquisitions and expansion plans signal long-term growth potential. The company remains focused on scaling operations and strengthening its market position.

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