Zaggle Prepaid announces QIP worth ₹450 crore with upsize option of ₹750 crore

Confirming CNBC-TV18's exclusive newsbreak last week, fintech firm Zaggle Prepaid has announced a Qualified Institutional Placement (QIP) with an issue size of ₹450 crore and an upsize option of up to ₹750 crore.

The indicative price for the QIP is set at ₹523.2 per share, reflecting a 6.75% discount to the current market price (CMP) and a 5% discount on the SEBI floor price. The fundraising is expected to result in an equity dilution of approximately 10.5%.

Zaggle’s board has already approved raising funds of up to ₹950 crore. This initiative aims to strengthen the company’s capital base while supporting inorganic growth and strategic investments.

In a November 17 interview with CNBC-TV18, Zaggle’s MD and CEO, Avinash Godkhindi, highlighted the company’s projected growth rate of 55-60% for FY25, with margins expected to range between 9-10%.

Founded in 2011 by Raj Narayanam, Zaggle specialises in spend management solutions and corporate employee benefits platforms. As of September 2024, the company claims to have issued 50 million prepaid cards, catering to over 3.03 million users.

Notably, ace investor Ashish Kacholia reportedly holds Zaggle shares in his portfolio. The stock has seen remarkable growth, gaining 151% in 2024 and more than tripling from its IPO price of ₹164 after debuting on the stock market in September last year.

Zaggle shares have, however, declined from their recent peak of ₹591.1, settling nearly 3% lower at ₹561.10 on the NSE on Wednesday, December 18. Despite the dip, the stock remains a strong performer.