Zaggle Prepaid Ocean Services IPO – An In-Depth Analysis and Review

Zaggle Prepaid Ocean Services Limited is making waves in the financial sector with its upcoming Initial Public Offering (IPO), scheduled to open for subscription on September 14, 2023. As a prominent player in the fintech industry, Zaggle Prepaid Ocean Services’ IPO has attracted significant attention from investors. In this comprehensive article, we will provide you with a detailed overview of the 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.

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Zaggle Prepaid Ocean Services IPO Details

IPO Opening Date 14-Sep-23
IPO Closing Date 18-Sep-23
IPO Listing Date 27-Sep-23
Issue Type Book Built Issue IPO
Face Value Rs 1 per equity share
IPO Price band Rs 156 to Rs 164 per equity share
Lot Size 90 Shares
Min Order Quantity  Shares
Listing at BSE and NSE
Total Issue Size Rs. 563.38 Crores
    Fresh issue     Rs. 392 Crores
    OFS     Rs. 171.38 Crores

Zaggle IPO Timetable

IPO Opens on 14-Sep-23
IPO Closes on 18-Sep-23
Basis of Allotment 22-Sep-23
Initiation of Refunds 25-Sep-23
Credit of Shares to Demat 26-Sep-23
Listing Date 27-Sep-23
Cut-off time for UPI mandate confirmation 18-Sep-23

About Zaggle Prepaid Ocean Services Ltd

Established in 2011, Zaggle Prepaid Ocean Services specializes in providing innovative fintech products and services designed to streamline corporate business expenses. With a diverse clientele spanning industries such as banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure, and automobiles, the company has carved out a significant presence in the fintech sector.

Zaggle Prepaid Ocean Services operates through seven offices across India, serving over 1.7 million end-users and more than 1,750 customers. Notable clients include TATA Steel, Persistent Systems, Inox, Pitney Bowes, and many more.

Zaggle Prepaid Ocean Services Ltd Financials

Here are the financial highlights of the company as of March 31, 2023:

Financial Year ending / Period ending (Amt in Crores)
Particulars FY21 FY22 FY23
Assets 62.08 92.65 234.76
Revenue 240.29 371.66 554.58
Profit After Tax 19.30 41.92 22.90

Objects of the Issue

The Zaggle Prepaid Ocean Services IPO includes an Offer for Sale (OFS) where the proceeds will go to selling shareholders, as well as a fresh issue. The net proceeds from the fresh issue will be allocated to the following objectives:

  • Expenditure towards Customer acquisition and retention.
  • Expenditure towards the development of technology and products.
  • Repayment/ pre-payment of certain borrowings, in full or part, availed by the company.
  • General corporate purposes.

IPO Valuation of Zaggle Prepaid

The IPO price band for Zaggle Prepaid Ocean Services is Rs 156 to Rs 164.

  • If we consider last year FY23 EPS of Rs 2.46, P/E ratio works out to be 67x
  • If we consider last 3 years weighted EPS of Rs 3.11, P/E ratio works out to be 53x
  • Means, company is asking for IPO price in the P/E ratio of 53x to 67x.

There are no listed peers who are in similar business, hence we cannot ascertain whether the issue price is under priced or over priced. However, in general the P/E range looks very high.

Zaggle Prepaid Ocean Services IPO – Positive Factors

  • Diverse Client Base: Serving a wide range of industries reduces dependency on any single sector.
  • Strong Revenue Growth: Zaggle Prepaid Ocean Services has demonstrated consistent revenue growth, indicating a robust market position.
  • Commitment to Innovation: The company’s expansion efforts and diverse product offerings signify a forward-looking approach.

Risk Factors

  • Sensitivity to Market Fluctuations: The company is sensitive to fluctuations in the market, which could affect profitability.
  • Market Dependency: A significant portion of domestic sales comes from specific regions, posing risks if adverse developments occur.
  • Working Capital Intensity: The high-volume, low-margin business model makes the company vulnerable to cash flow challenges.
  • Competitive Landscape: The fintech industry has low barriers to entry, and competition from new entrants could affect market share.
  • Related Party Transactions: Past and potential related party transactions could raise concerns about conflicts of interest.

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Zaggle Prepaid Ocean Services IPO Review – Should You Apply?

The Zaggle Prepaid Ocean Services IPO presents both opportunities and challenges. Consider these key points before making an investment decision:


  • Diverse customer base.
  • Steady revenue growth.
  • Expansion efforts.
  • Commitment to innovation.


  • OFS portion goes to selling share holders.
  • IPO valuation cannot be ascertained whether under priced or over priced as there are no listed peers.
  • Sensitivity to market fluctuations.
  • Regional market dependency.
  • High working capital intensity.
  • Competitive industry landscape.
  • Potential conflicts of interest.

High risk investors can invest in this IPO for medium to long term perspective.

Suresh KP

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