FinTech-SaaS company Zaggle Prepaid Ocean Services Ltd has set a price band of Rs 156-164 a share for its initial public offering that will open for subscription on 14 September. The anchor investors bidding will start on September 13 and the offer will close on September 18.
The finalisation of the basis of allotment will be done on September 22, initiation of refunds will be on September 25 and the shares will be listed on exchanges on September 27.
The initial public offering comprises a fresh issue of shares worth Rs 392 crore by the company, and an offer-for-sale of 10.45 million shares by eight selling shareholders including promoters Raj P Narayanam, and Avinash Ramesh Godkhindi. VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, Ventureast Trustee Company, Zuzu Software Services, and Koteswara Rao Meduri are other selling shareholders in the OFS.
At the higher end of the pricing range, the company plans to generate Rs 564 crore through its IPO, and its valuation stands at Rs 2,000 crore.
Zaggle, a leading player in spend management with a differentiated value proposition and diversified user base, will make use of net fresh issue proceeds for customer acquisition and retention at a cost of Rs 300 crore, and development of technology and products amounting to Rs 40 crore, in three financial years FY24 to FY26.
The company will also be repaying its debts of Rs 17.08 crore via fresh issue money, and the remaining will be for general corporate purposes.
As of March 2023, its total outstanding borrowings were Rs 90.03 crore. ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial are the merchant bankers to the issue, while KFin Technologies is the registrar.