CALCULATE YOUR SIP RETURNS

Zaggle Prepaid Announces QIP with Upsize Option

Updated on: Dec 19, 2024, 2:50 PM IST
Zaggle Prepaid launches ₹950 crore QIP at ₹550.73/share; trading at ₹537 (-4.30%), up 147.12% YTD; aims for growth, expansion, & investments.
Zaggle Prepaid Announces QIP with Upsize Option
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Zaggle Prepaid Ocean Services Limited has launched a Qualified Institutional Placement (QIP) of equity shares worth ₹950 crore, with the potential for an upsize option. The floor price for the QIP has been set at ₹550.73 per equity share, calculated in line with SEBI (ICDR) Regulations. The company may offer a discount of up to 5% on the floor price for eligible institutional investors​​. 

Approval & Compliance

The QIP was approved by the company’s board of directors on October 30, 2024, and subsequently received shareholder approval via a postal ballot on December 2, 2024. The Special Purpose Committee authorized the issue’s opening on December 18, 2024​.

Facts & Numbers

  • Indicative Price: The shares are expected to be priced between ₹500 and ₹520, showing a discount of 6.75% on the current market price of ₹561.10 as of December 18, 2024.
  • Equity Dilution: The fundraising will likely result in an equity dilution of approximately 10.5%.
  • Market Performance: Listed in September 2023, Zaggle’s shares have risen by over 151% year-to-date and more than tripled from the IPO price of ₹164​.

Use of Proceeds

The funds raised will support the company’s inorganic growth, international expansion, and other investments. In an earlier statement, MD and CEO Avinash Godkhindi highlighted the company’s intent to maintain flexibility for growth opportunities​.

Operational Highlights

Zaggle specializes in corporate employee benefits and spend management solutions, having issued over 50 million prepaid cards to users as of September 2024. Additionally, the company has entered into agreements such as its partnership with Narayana Hrudayalaya Limited for expense management services​.

Share Performance 

At 10:30 AM, Zaggle Prepaid Ocean Services Ltd was trading at ₹537.00, down ₹24.10 (4.30%) for the day, but up 147.12% year-to-date.

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.

Published on: Dec 19, 2024, 2:50 PM IST

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 2.5 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 2.5 Cr+ happy customers