Zaggle has set the floor price for the QIP at INR 550.73 per equity share, a discount of 1.9% from the stock’s last closing price on Wednesday
This comes two months after the fintech SaaS company’s board approved plans to raise up to INR 950 Cr
Zaggle’s PAT surged 167.67% YoY to INR 20.29 Cr in Q2 FY25, while operating revenue soared 64.21% to INR 302.55 Cr
Fintech SaaS company Zaggle has opened its qualified institutional placement (QIP) offer to raise INR 950 Cr.
In an exchange filing, the company said that the fund raising committee of its board approved the opening of the offer and set a floor price for the QIP at INR 550.73 per equity share.
This represents a discount of 1.9% from the stock’s last closing price on Wednesday.
“… the ‘relevant date’ for the purpose of the issue… is December 18, 2024…, and accordingly the floor price in respect of the aforesaid issue… is INR 550.73 per equity share… The company may offer a discount of not more than 5% on the floor price calculated for the issue,” it said in the filing.
The company has appointed Motilal Oswal Investment Advisors, Equirus Capital and Nuvama Wealth Management as merchant bankers to helm the QIP.
This comes two months after Zaggle kicked off plans to raise up to INR 950 Cr through a QIP after a meeting of its board of directors on October 30. At the time, the company said that the board approved the proposal to raise the funds through issuance of equity shares, convertible bonds, non-convertible instruments and any other instruments.
As per the offer document, Zaggle plans to use INR 500 Cr from the QIP proceeds for investments and acquisitions. While INR 59.1 Cr will be utilised for prepayment or repayment of outstanding borrowings availed by the company, the remaining amount will be used for general corporate purposes.
Founded in 2011 by Raj Narayanam, Zaggle offers spend management solutions as well as a corporate employee benefits platform. As of September 2024, it claims to have issued 50 Mn prepaid cards and serve over 3.03 Mn users.
The company posted a consolidated profit after tax of INR 20.29 Cr in the second quarter (Q2) of the financial year 2024-25 (FY25), up 167.67% from INR 7.58 Cr in the year-ago period. Operating revenue soared 64.21% to INR 302.55 Cr during the quarter under review from INR 184.24 Cr in Q2 FY24.
The QIP issue comes at a time when Zaggle’s stock has been on an upswing in the past month. Since November 18, the stock is up nearly 27%. It soared to an all-time high of INR 597 on the BSE on December 17.
Shares of Zaggle closed 2.91% lower at INR 561.35 on the BSE on Wednesday.
