Zaggle Prepaid Ocean Services Limited is making waves in the financial world with its initial public offering (IPO) scheduled to begin offering on September 14, 2023. As a prominent player in the fintech industry, Zaggle Prepaid Ocean Services’ IPO has garnered attention. It is also attracting a lot of attention from investors. This comprehensive article provides a detailed overview of Zaggle Prepaid Ocean Services IPO, including key dates, company information, key positive and negative factors, and a comprehensive review to help you make an informed investment decision. We provide.
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Zaggle Prepaid Ocean Services IPO Details
| IPO start date | September 14, 23 |
| IPO deadline | September 18, 23 |
| IPO listing date | September 27, 23 |
| Type of problem | Book Built Issue IPO |
| face value | 1 rupee per share |
| IPO price range | 156 to 164 rupees per share |
| lot size | 90 shares |
| Minimum order quantity | stock |
| Exhibition location | BSE and NSE |
| Total issue size | Rs. 563.38 billion |
| Latest issue | Rs. 392 million |
| OFS | Rs. 171.38 billion |
Zaggle IPO Schedule
| IPO start date | September 14, 23 |
| The IPO will close in | September 18, 23 |
| Basis for allocation | September 22, 23 |
| Initiate refund | September 25, 23 |
| Credit of shares to Demat. | September 26, 23 |
| Listing date | September 27, 23 |
| Deadline time for UPI obligation confirmation | September 18, 23 |
About Zaggle Prepaid Ocean Services Ltd
Founded in 2011, Zaggle Prepaid Ocean Services specializes in providing innovative fintech products and services designed to streamline business expenses for companies. With diverse customers across industries such as banking, finance, technology, healthcare, manufacturing, FMCG, infrastructure, and automotive, the company has established a significant presence in the fintech space.
Zaggle Prepaid Ocean Services operates through seven offices across India, serving over 1.7 million end-users and over 1,750 customers. Notable customers include TATA Steel, Persistent Systems, Inox, Pitney Bowes, etc.
Zaggle Prepaid Ocean Services Ltd Finance
The company’s financial highlights as of March 31, 2023 are as follows:
| Fiscal year end/period end (amount in billions) | |||
| detail | FY21 | FY22 | 23rd year |
|---|---|---|---|
| assets | 62.08 | 92.65 | 234.76 |
| revenue | 240.29 | 371.66 | 554.58 |
| Profit after tax | 19.30 | 41.92 | 22.90 |
subject of the problem
Zaggle Prepaid Ocean Services’ IPO, like a new issue, includes an offer for sale (OFS) in which proceeds go to selling shareholders. The net proceeds from the new issuance will be allocated for the following purposes:
- Spending on customer acquisition and retention.
- This is the cost of developing technology and products.
- Full or partial repayment/prepayment of a particular loan is available to the company.
- General corporate purposes.
Zaggle Prepaid IPO Valuation
Zaggle Prepaid Ocean Services’ IPO price range is between Rs 156 and Rs 164.
- Considering last year’s FY2023 EPS was 2.46 rupees, the P/E ratio is 67 times.
- Considering the last three years’ weighted EPS of Rs 3.11, the P/E ratio is 53x.
- In other words, the company is seeking an IPO price of 53x to 67x P/E.
Since there are no listed companies in the same industry that are engaged in similar business, it is not possible to confirm whether the issue price is undervalued or overvalued. However, the P/E range generally looks very high.
Zaggle Prepaid Ocean Services IPO – Positives
- Diverse customer base: Reduce dependence on a single sector by serving a wide range of industries.
- Significant revenue growth: Zaggle Prepaid Ocean Services has shown consistent revenue growth, indicating a solid market position.
- Commitment to innovation: The company’s expansion efforts and diverse product offerings demonstrate a forward-looking approach.
Risk factor
- Raw material procurement: Lack of long-term contracts with suppliers for raw materials can impact production.
- Sensitivity to market fluctuations: The company is sensitive to market fluctuations, which may affect its profitability.
- Market dependence: The majority of domestic sales come from specific regions, which poses risks in the event of adverse conditions.
- Working capital intensity: The high-volume, low-margin business model makes the company vulnerable to cash flow challenges.
- Competitive environment: The fintech industry has low barriers to entry, and competition from new entrants can impact market share.
- Related party transactions: Past and potential related party transactions may raise concerns about conflicts of interest.
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Zaggle Prepaid Ocean Services IPO Review – Should I Apply?
Zaggle Prepaid Ocean Services’ IPO brings both opportunities and challenges. Before deciding to invest, consider the following important points:
Strong Points:
- Diverse customer base.
- Steady revenue growth.
- Expansion efforts.
- Commitment to innovation.
Cons:
- A portion of OFS will be distributed to selling shareholders.
- We cannot confirm whether the IPO is undervalued or overvalued because no other companies in the same industry have gone public.
- Sensitivity to market fluctuations.
- Dependence on local markets.
- High working capital intensity.
- A competitive industry landscape.
- Potential conflicts of interest.
High-risk investors can invest in this IPO from a medium- to long-term perspective.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
