Zaggle Prepaid Ocean Services Limited

About Zaggle Prepaid Ocean Services Limited IPO

Incorporated in 2011, Zaggle Prepaid Ocean Services offers fintech products and services. It has a diversified SaaS (Software as a Service) software portfolio to manage business expenses. Its products and services help businesses with their spending management, rewards and incentives management for employees and channel partners, and gift card management for merchants.

As part of its offerings, the company has collaborates with several banking partners, including  IndusInd Bank, Yes Bank and NSDL Payments Bank. Through these partnerships, the company has issued over 50 million co-branded prepaid cards, contributing 16% of India’s total prepaid transaction volume as of 31 March 2023. 

The company serves the following industries - banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and automobile. Some of its customers include Tata Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, Hiranandani Group, Cotiviti and Greenply Industries. 

Between FY21 and FY23, company’s revenue from operations grew at a CAGR of 32%. Its net profit rose by over 5% during the same period. Meanwhile, aggregate users on its platform grew at a CAGR of 36% to 2.2 million users.   

As per industry reports, the overall market for spend management software and services is expected to surpass ₹200 billion by FY27, with the share of outsourced spend management estimated to be around 60% during that period. This large market size could benefit the company. 

And now, Zaggle Prepaid Ocean Services is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised for customer acquisition and retention, development of technology and products, repayment of borrowings, and general corporate purposes. Its shares will be listed on the NSE and the BSE.

Here are key details about the Zaggle Prepaid Ocean Services IPO:

Financial snapshot

A quick look at Zaggle Prepaid Ocean Services Limited IPO’s strengths, risks and threats

Strengths 

1. Leading player in spend management, with more than 50 million prepaid cards issued in partnership with banking partners and more than 2.2 million users served as of 31 March 2023.
2. High customer retention rate, with only 1.54% of customers terminating their contracts in FY23. In addition, the company has diverse sources of revenue and low customer acquisition and retention costs.
3. Operates in India’s spend management software and services market, which is expected to grow at a CAGR of over 19% by 2027. 
4. 2,411 customers in India with varying sizes, user bases, operating histories, sectors and annual turnovers as of 31 March 2023.

Risks and threats

1. Dependent on third-party payment networks and channel partners. 
2. Operates in a competitive industry and faces competition from Divvy, Brex, Pleo, Ramp, Coupa, Expensify, Fleetcor, Edenered, Wex and Happay. Meanwhile, business is also subject to seasonality. 
3. Experienced negative operating cash flows in FY23 and negative net worth in FY21 and FY22. 
4. Had a total outstanding borrowing of ₹90 crore as of 31 March 2023. 

Zaggle Prepaid Ocean Services Limited IPO details

| Zaggle Prepaid Ocean Services Limited IPO date

According to the offer document filed by the company with the SEBI, the Zaggle Prepaid Ocean Services IPO’s opening date – in other words, the Zaggle Prepaid Ocean Services IPO launch date – will be 14th September 2023. The Zaggle Prepaid Ocean Services IPO closing date is 18th September 2023. After this, investors will be updated about the allotment status on 22nd September 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 26th September 2023. The Zaggle Prepaid Ocean Services IPO listing date is 27th September 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

| Zaggle Prepaid Ocean Services Limited IPO price band

The IPO is an offer for sale as well as a fresh issue. The Zaggle Prepaid Ocean Services IPO price band has been set between ₹156 and ₹164 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Zaggle Prepaid Ocean Services IPO listing price will be determined on 27th September 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Zaggle Prepaid Ocean Services Limited IPO lot size 

The Zaggle Prepaid Ocean Services IPO details have been declared. The Zaggle Prepaid Ocean Services IPO lot size is set at 90 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Zaggle Prepaid Ocean Services IPO issue size is approx ₹563 crore. 

How to pre-apply for the Zaggle Prepaid Ocean Services Limited IPO?

You can pre-apply for the Zaggle Prepaid Ocean Services Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘ Zaggle Prepaid Ocean Services Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Zaggle Prepaid Ocean Services Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Zaggle Prepaid Ocean Services Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Zaggle Prepaid Ocean Services Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘ Zaggle Prepaid Ocean Services Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Zaggle Prepaid Ocean Services Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Zaggle Prepaid Ocean Services Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Zaggle Prepaid Ocean Services Limited IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the Zaggle Prepaid Ocean Services Limited IPO

To apply for the Zaggle Prepaid Ocean Services Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the Zaggle Prepaid Ocean Services Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the Zaggle Prepaid Ocean Services Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.