Zaggle Prepaid Ocean Services Limited saw its shares decline by 5% on December 19, hitting the lower circuit at ₹533.05 on the NSE. The drop in share price comes after the company confirmed its plans to raise funds through a Qualified Institutional Placement (QIP), with an issue size of ₹450 crore and an upsize option of up to ₹750 crore.
The indicative price for the QIP is set at ₹523.2 per share, representing a 6.75% discount to the current market price and a 5% discount to SEBI’s floor price. The fundraising initiative, approved by Zaggle’s board, is expected to dilute equity by approximately 10.5%.
Details of the QIP
- Base Size: ₹450 crore
- Upsize Option: Additional ₹300 crore, taking the total to ₹750 crore
- Indicative Price: ₹523.2 per share
- Discount: 6.75% from the CMP and 5% from the SEBI floor price
- Dilution: Expected equity dilution of 10.5%
The funds raised will be utilized to strengthen Zaggle’s capital base and support its inorganic growth strategy and strategic investments. The QIP reflects the company’s efforts to bolster its financial flexibility and capitalize on growth opportunities in the fintech space.
In a previous interview with CNBC-TV18, Avinash Godkhindi, Managing Director and CEO of Zaggle, projected a growth rate of 55-60% for FY25, with margins expected to range between 9-10%. The fundraising aligns with the company’s ambitions to scale operations and achieve its growth objectives.
Founded in 2011 by Raj Narayanam, Zaggle specializes in corporate spend management solutions and employee benefits platforms. The company boasts issuing 50 million prepaid cards, serving over 3.03 million users as of September 2024.
ZAGGLE PREPA OCEAN Share Price history
| Day | Open | Close | Change % |
|---|---|---|---|
|
Wed, Dec 18 2024
|
₹582.00
|
₹561.10
|
-2.88%
|
|
Tue, Dec 17 2024
|
₹584.75
|
₹577.75
|
-0.68%
|
|
Mon, Dec 16 2024
|
₹561.20
|
₹581.70
|
|
|
Fri, Dec 13 2024
|
₹535.00
|
₹560.45
|
|
|
Thu, Dec 12 2024
|
₹562.05
|
₹546.10
|
-5.00%
|
|
Wed, Dec 11 2024
|
₹580.00
|
₹574.85
|
-0.11%
|
|
Tue, Dec 10 2024
|
₹549.00
|
₹575.50
|
|
|
Mon, Dec 9 2024
|
₹539.80
|
₹550.55
|
|
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