Zaggle Prepaid Ocean Services' IPO to open on 14 September

The initial share sale of fintech player Zaggle Prepaid Ocean Services Ltd will open for public subscription on Thursday.

The three-day initial public offering (IPO) will conclude on September 18, and the bidding for anchor investors will open on September 13 and for retail on September 14, as per the red herring prospectus (RHP) filed on Friday.

Zaggle has revised the size of its fresh issue to Rs 392 crore from Rs 490 crore after it had conducted a pre-IPO placement in two tranches in August and raised Rs 98 crore from the investors.

Accordingly, the size of the fresh issue is reduced to Rs 392 crore.

Further, the company also reduced its offer for sale (OFS) component from 1.05 crore equity shares to 1.04 crore shares after one of its selling shareholders exited the issue, according to the RHP.

The OFS now comprises up to 1.04 crore equity shares by promoters -- Raj P Narayanam and Avinash Ramesh Godkhindi.

Apart from the promoters, VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, Ventureast Trustee Company, Zuzu Software Services Pvt Ltd and Koteswara Rao Meduri are the other selling shareholders.

The company proposes to utilise Rs 300 crore of the net proceeds on expenditure towards customer acquisition and retention, up to Rs 40 crore on expenditure towards the development of technology and products, and up to Rs 17.08 crore to pare down, in full or in part, debt availed by the firm.

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.