Fintech firm Zaggle Prepaid Ocean Services on Monday unveiled the price band for its initial public offering (IPO), which is set to open on September 14 and close on September 18. The bidding for anchor book will begin on September 13, while finalisation of the basis of allotment will be done on September 21. The shares are slated to be listed on exchanges on September 22.

The Mumbai-based fintech-SaaS company has set a price band of ₹156-164 a share for its IPO, which comprises a fresh issue of equity shares worth ₹392 crore and an offer for sale of 1.04 crore shares by promoters and existing shareholders.

At the upper end of the price band, the company plans to fetch around ₹563 crore via IPO route, and its current valuation stands at ₹2,000 crore.

The lot size is 90 shares, which means the minimum application amount for a retail investor will be ₹14,760.

The company has reserved up to 75% of the total offer for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.

As per the document filed with market regulator SEBI, the offer comprises 34,352,255 equity shares of the face value of ₹1, aggregating up to ₹563.38 crore. The issue is a mix of fresh equity shares and OFS by eight shareholders including promoters Raj P Narayanam, and Avinash Ramesh Godkhindi.  Among others, VenturEast SEDCO Proactive Fund LLC, VenturEast Proactive Fund LLC, GKFF Ventures, Ventureast Trustee Company, Zuzu Software Services, and Koteswara Rao Meduri will also offload shares via OFS.

The funds raised from the issuance of fresh equity shares will be used for customer acquisition and retention, development of technology and products, payment of debt and for general corporate purposes. It intends to use ₹300 crore for customer acquisition and retention over three financial years from FY24 to FY26; ₹40 crore for the development of technology and products; ₹17.08 crore to repay debts; and remaining capital for general corporate purposes.

As of March 2023, Zaggle had total outstanding borrowings of ₹90.03 crore.

ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial are the merchant bankers overseeing the IPO. KFin Technologies is the registrar handling the IPO process.

Incorporated in 2011, Zaggle operates in the business-to-business-to-customer segment and is amongst a small number of uniquely positioned players with a diversified offering of financial technology products and services. It has one of the largest numbers of issued prepaid cards in India in partnership with certain of its banking partners (12.7% of the country’s total prepaid transaction value as of March 31, 2022). Zaggle collaborated with three banking partners; i.e., IndusInd Bank Limited, Yes Bank Limited and NSDL Payments Bank Limited; and has issued more than 45 million co-branded prepaid cards since inception of our business.

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