Shares of this fintech company, which offers digital solutions, are gaining attention as it prepares to launch a Qualified Institutional Placement (QIP) valued at Rs. 950 crore. The move is expected to enhance the company’s capital and strengthen its financial position.
Price Movement
In Thursday’s trading session, Zaggle Prepaid Ocean Services Ltd’s share price reached an intraday high of Rs.573.00 per share, falling 0.3 percent from its previous closing price of Rs.574.85 apiece. The shares have retreated since then and currently trading at Rs.565.00 apiece. Over the past five years, the shares have delivered over 250 percent returns.
What happened
Zaggle Prepaid Ocean Services is set to launch a Rs.950 crore Qualified Institutional Placement (QIP) in the next two weeks, according to sources familiar with the matter told CNBC-TV18. The institutional share sale is expected to lead to an equity dilution of 15 percent to 16 percent, with a price range of Rs.500 – Rs.520, below the current market price.
The funds raised will likely be used for inorganic growth and strategic investments. Zaggle’s board had previously approved the Rs.950 crore fundraise. As of the end of the September quarter, the promoters held a 43.88 percent stake in the company.
In a November 17 interview, Avinash Godkhindi, CEO of Zaggle, mentioned the company is targeting a growth rate of 55 percent to 60 percent for FY25, with margins expected to range between 9 percent and 10 percent.
Recent Developments
Zaggle Prepaid’s recent developments include a November 2024 partnership with Can Fin Homes to strengthen its expense management capabilities, underscoring its focus on expanding service offerings. The company is also recognized for its innovative financial solutions and maintains an impressive customer retention rate of 98%.
Zaggle has introduced cutting-edge solutions like an advanced analytics platform that boosts business cost efficiency, integrated with corporate credit cards and SaaS technology through banking partners.
Its Fleet Program provides a customized spend management system for fleet operations, while ZIP ensures seamless, compliant international payments with full transparency.
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Prominent Partners and Clients
Key customers of Zaggle Prepaid Ocean Services Ltd include Hiranandani, Tata Steel, and Greenply. The company collaborates with prominent partners such as DBS, Kotak, IndusInd Bank, Visa, and Mastercard.
Financial Performance
In its recent financial update for the quarter ending September 2024, Zaggle Prepaid Ocean Services Ltd reported revenue from operations of Rs.303 crore, reflecting a 65 percent incline from Rs.184 crore in Q2 FY24. Net Profits improved significantly by 137 percent to Rs.175 crore from Rs.6 crore in the same period.
Shareholding Pattern
As per the September 2024 shareholding pattern, the promoters of Zaggle Prepaid Ocean Services Ltd hold a 43.88 percent stake, while Foreign Institutional Investors hold a 6.14 percent stake. Domestic Institutional Investors and Retail investors hold a stake of 10.69 percent and 39.27 percent, respectively in the company. Notable ace investor, Ashish Kacholia owns a 2.37 percent stake in the company.
Company Overview
Zaggle Prepaid Ocean Services Ltd, a Hyderabad-based fintech company, specializes in automated solutions for business expense management. It caters to corporates, SMEs, and startups, offering innovative workflow solutions to streamline operations.
Written by – Siddesh S Raskar
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