Lacklustre Start! Zaggle Prepaid shares list at IPO price
Most analysts were cautious on the IPO over aggressive valuations. «If we attribute FY23 earnings to the post-IPO fully diluted paid-up equity capital of the company, the asking price is at a P/E of 66.7,» analysts said.
However, the company received a decent response from investors as the issue was booked 12.57 times on strong institutional interest.
The IPO comprised fresh issue of equity shares worth Rs 392 crore and an offer for sale (OFS) of 1.04 crore shares by promoters, investors and other shareholders.
The price band for the issue was Rs 156-164 per share.
Under the OFS, promoters Raj P Narayanam and Avinash Ramesh Godkhindi and investors VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, and Ventureast Trustee Company offloaded shares.
Days before the issue launch, Zaggle had raised about Rs 98 crore in a pre-IPO placement, where marquee investors, including Ashish Kacholia, picked up stake.
Proceeds from the fresh issue would be utilised towards customer acquisition and retention, development of technology and products, payment of debt and for general corporate purposes.
Founded in 2011, Zaggle operates in the business-to-business-to-customer segment. It has created a market niche in the country by offering a combined solution for spend management through prepaid cards and employee management (through SaaS).
It also offers digitized solutions for employee tax benefits, expense management, corporate gifting and rewards and recognition programmes.
Zaggle Prepaid has clocked revenue growth of 49% in FY23 to Rs 553 crore and a profit after tax of Rs 22.9 crore, which is nearly half from a year ago.
ICICI Securities, Equirus Capital, IIFL Securities and JM Financial were
