In a significant development, Zaggle Prepaid Ocean Services witnessed a remarkable surge, reaching a new all-time high by soaring 14.5 percent to Rs 247.7. This surge was attributed to the company’s successful acquisition of a substantial deal worth $20 million (Rs 166 crore) from Visa Worldwide. The deal involves the issuance of various forex co-brand cards.
Visa Worldwide has committed to paying bonuses to Zaggle for facilitating the launch of Forex co-brand cards. Additionally, incentives on Forex transactions will be provided based on predetermined spending commitments.
Zaggle, leveraging its existing corporate client base, plans to market forex cards to employees of these corporate clients. The integration will be seamless, closely linking the offering with Zaggle’s expense management solution. The deal’s magnitude is approximately $20 million over the next five years, as per information shared in an exchange filing by Zaggle.
Despite a subdued debut on the stock exchanges last month, Zaggle shares have surged by over 51 percent from the IPO price of Rs 164, showcasing strong investor confidence. The public offer, which included a fresh issue of shares worth Rs 392 crore and an offer-for-sale (OFS) of shares worth Rs 171.38 crore, garnered significant interest from investors, with a subscription rate of 12.86 times.
Earlier this week, the company reported a 67.4 percent year-on-year (YoY) decline in its net profit, totaling Rs 2.05 crore in the quarter ended June 2023, compared to Rs 6.3 crore in the corresponding period last year. Despite this, the revenue from operations exhibited a robust growth of 33.7 percent, reaching Rs 118.48 crore from Rs 88.62 crore in the previous year.
As of 02:12 am, the stock was trading at Rs 239.05 on the BSE, marking an impressive 10.65 percent increase.
