Zaggle Prepaid Ocean Services IPO Listing: Zaggle Prepaid Ocean Services Ltd on Friday, September 22, made a stock market debut with about 2 per cent listing gains. Its shares traded at Rs 167.50 in the early trade on the BSE, compared with the issue price of Rs 164 apiece.
On the NSE, Zaggle’s shares were trading at Rs 167.35 at 10.08 am, thus posting a 2.04 per cent listing gain.
The company’s shares had opened in the red on the BSE but soon turned green with the 2 per cent gains. On the NSE, the shared opened flat.
The Rs 564-crore IPO remained open for subscription between September 14 and September 18.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, “Zaggle Prepaid made its debut on the stock markets today by listing at Rs 164 per share, which is exactly a flat listing considering its issue price of Rs 164. Zaggle is a uniquely positioned player in the fintech industry, but it has a major dependency on third parties and has faced negative cash flow and a decline in its profitability in recent years. The IPO valuation was also high.”
She said investors should exit their positions, but those who want to hold for some gain should maintain a stop loss at 148. Another listing was of Samhi Hotels at Rs 134.5 per share, a premium of 6.7 per cent to its IPO price of Rs 126. On the one hand, the company is loss-making, and its financial performance has been poor for the last three years.
“The company is making progress on cutting losses, and the sales multiple is 3.7X, which is below the industry average. Investors should book profit and exit their position, and those who still want to hold should maintain a stop loss at the listing price,” Nyati said.
The price band for the IPO has been fixed at Rs 156-164 apiece, a hefty 156-164 times of the face value of its shares. The initial public offering 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.
Founded in 2011, the company 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). ICICI Securities Ltd, Equirus Capital Private Ltd, IIFL Securities Ltd and JM Financial Ltd are the book-running lead managers to the issue.
The equity shares of the company will be listed on the BSE and NSE. In FY22, the company had reported Rs 370 crore in revenue, from which it had earned Rs 40 crore in net income.
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