Zaggle's Rs 564-crore IPO opens on Sep 14; price band fixed at Rs 156-164 per share
IPO), which is opening on September 14, comprises a fresh issue of equity shares up to Rs 392 crore and an offer for sale (OFS) by promoters and a few external investors aggregating up to Rs 174 crore.
Post-issue the promoter/promoter entities will hold around 42 per cent of the paid up equity, while selling shareholders will collectively pare their holdings by a tad over 8 per cent.
Through the OFS, the founder and chairman Raj P Narayanam will sell just 0.02 per cent from his 44 per cent holding. Another promoter Avinash Ramesh Godkhindi, who is also the managing director of the city-based firm, will sell an equal amount of stake.
External investor VenturEast Proactive Fund will sell a 2.17 per cent, while another external investor GKFF Ventures will pare only 0.02 per cent. Besides, VenturEast Sedco Proactive Fund will sell 1.72 per cent, VenturEast Trustee Company will sell 3.78 per cent, and Koteshwara Rao Meduri, an individual investor, will pare 0.02 per cent.
These foreign funds and non-family shareholders collectively own 15 per cent in the company pre-IPO, chairman Raj Narayanam told PTI here.
In FY22, the company had reported Rs 370 crore in revenue, from which it had earned Rs 40 crore in net income.
The topline jumped to Rs 550 crore in FY23 from which it earned Rs 23 crore in net income as it had incurred Rs 14.5 crore additional expenses on employee stock option plan, Avinash Ramesh Godkhindi told PTI, adding two-thirds of its revenue come from external commercial channels and the rest from employee channels.
This shows that the company, despite being a B2B-focused entity, spends heavily on customer acquisition and retention, and has accordingly set aside as much as Rs 300 crore from the IPO proceeds for
