Saas firm Zaggle Prepaid Ocean Services gets Sebi's approval for IPO. Details here
2 min read . Updated: 05 Apr 2023, 10:32 PM IST
Premium- The company received its final observation letter from Sebi on March 29, 2023. ICICI Securities is the co-ordinating lead manager for the IPO.
Fintech-SaaS firm, Zaggle Prepaid Ocean Services has received the final observations from the market regulator SEBI for its proposed initial public offering (IPO). Zaggle is a leading player in spend management with a differentiated value proposition and diversified user base.
The company received its final observation letter from Sebi on March 29, 2023. ICICI Securities is the co-ordinating lead manager for the IPO.
Zaggle filed its IPO draft on December 21 last year. The company plans to raise funds through the IPO which consists of a fresh issue worth ₹490 crore and an offer for sale (OFS) of 10,526,316 equity shares by selling shareholders. The equity shares offered under the IPO have a face value of Re 1 each.
Among the selling shareholders for the IPO are -- -promoters Raj P Narayanam and Avinash Ramesh Godkhind, while other shareholders are VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, Ventureast Trustee Company, Koteswara Rao Meduri, and Malvika Poddar.
Of the total IPO, 75% of the portion will be kept for qualified institutional buyers (QIBs), while 15% will be allocated to non-institutional investors (NIIs) and the remaining 10% will be kept for retail individual investors (RIIs).
Book Running Lead Managers (BLRM) to the IPO are -- ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial. While KFin Technologies is the registrar of the IPO.
Zaggle will use the proceeds of the fresh issue for expenditure toward customer acquisition and retention. Also, for the expenditure of development of technology and products. A portion of the proceeds will also be utilised to repay certain borrowings and general corporate purposes.
The company will not use the proceeds from OFS as they will go to mentioned selling shareholders.
It needs to be noted that Zaggle has been profitable for the last three years and is one of the few profitable SaaS fintech companies in India.
Zaggle operates in the B2B2C segment and is amongst a small number of uniquely positioned players with a diversified offering of financial technology products and services. The company provides offerings to customers and users that include employees, channel partners, and customers, while collaborating with merchants, banks, and NBFCs, providing a strong value proposition to each stakeholder