Multibagger IPO: Zaggle Prepaid share price jumps 250% against issue price in 15-month

Multibagger IPO: Zaggle Prepaid Ocean share price has surged 250% from its IPO price of ₹164 within 15 months following its debut on September 22, 2023. According to sources cited by CNBC-TV18, Zaggle Prepaid Ocean is expected to initiate a ₹950 crore Qualified Institutional Placement (QIP) in the next two weeks. This QIP may result in an equity dilution of 15-16% at a price range of ₹500-520 per share. The funds raised are likely aimed at supporting inorganic growth and strategic investments.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Zaggle Prepaid Ocean share price have shown an impressive uptrend since listing, with the weekly chart forming a higher top-higher bottom structure, reflecting a strong bullish undertone. While the past two sessions have witnessed a slight correction from higher levels, the positive sentiment remains intact. 

“Dips can be viewed as buying opportunities, with the 20-day EMA near 520 serving as a robust support level. A pullback towards this level could present an entry point, with immediate resistance seen at 600, followed by 650,” advised Bhosale.

However, Zaggle Prepaid Ocean share price on Thursday’s session slumped nearly 5%, trading at ₹553.50 per share on BSE. Zaggle Prepaid Ocean share price opened at an intraday high of ₹573, the stock touched an intraday low of ₹547.20 apiece. 

Q2 Results 

SaaS fintech platform Zaggle Prepaid Ocean Services recorded a net profit of ₹20.3 crore for the September quarter, marking a three-fold increase. In the same period last year, the net profit was ₹7.62 crore, according to a disclosure made by the company. For the quarter being analyzed, the revenue from operations stood at ₹302.5 crore, reflecting a 64.22% rise compared to ₹184.2 crore from the previous year, the company stated.

The company has raised its forecast for topline growth for FY25 from 45-55 percent to 50-55 percent and is optimistic about achieving double the revenues of FY24 within the next two years, according to Raj P Narayanam, Founder and Executive Chairman of Zaggle Prepaid Ocean Services.

Recently, Zaggle was recognized with the Transformation Tech Award during the Deloitte Technology Fast 50 India 2024 event, which celebrates the 50 fastest-growing technology firms in the country. The rankings are determined by the percentage increase in revenue over a three-year period. This award underscores Zaggle’s ongoing dedication to innovation and outstanding performance in the areas of expense management and spend analytics solutions.

Order Wins

In December so far, the company has secured approximately three contracts or awards. Zaggle Prepaid Ocean has formed a partnership with HDFC Bank Limited (HDFC). HDFC credit cards will be packaged with Zaggle Software for corporate clients in various sectors. Additionally, Zaggle will supply the Zoyer Solution to Blink Commerce Private Limited. Zaggle Prepaid Ocean Services Limited has also signed an agreement with AGP City Gas Private Ltd.

Zaggle Prepaid Ocean IPO details 

The Zaggle Prepaid IPO was oversubscribed by 12.57 times by the third day. It was available for subscription starting Thursday, September 14, and concluded on Monday, September 18.

The retail investors’ segment of the Zaggle IPO was subscribed 5.94 times, while the portion for Non-Institutional Investors (NII) was subscribed 8.85 times, and the Qualified Institutional Buyers (QIB) segment received a subscription rate of 16.73 times. The Zaggle IPO consisted of a fresh issue that included shares valued at ₹392 crores and an offer for sale (OFS) portion that comprised 10,449,816 shares with a face value of Re 1, totaling ₹171.38 crores sold by promoter selling shareholders Raj P Narayanam, Avinash Ramesh Godkhindi, and others. The total size of the Zaggle IPO amounted to ₹563.38 crores.

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