Startup IPOs: Zaggle’s Public Issue To Open On Sept 14

After a severe lull in the startup IPO market since last year, there are some signs of recovery as two Indian startups, Yatra and Zaggle, are set to launch their IPOs this week.

Mumbai-based B2B fintech startup Zaggle is opening the bids for its issues on Thursday (September 14) in the price band of INR 156 to INR 164 per equity share, which will conclude on September 18. 

Zaggle’s IPO comprises a fresh share issue of INR 392 Cr as well as an offer for sale (OFS) element of 10.5 Mn shares. The startup is getting listed on both NSE and BSE.

On the upper price band, Zaggle’s total IPO issue size stands at INR 563.4 Cr.

The startup plans to utilise the net proceeds from the IPO to meet the expenses related to customer acquisition and retention, development of technology and products, repayment or prepayment of certain borrowings, and general corporate purposes.

Founder Raj P Narayanam and CEO Avinash Godkhindi will dilute about 1.5 Mn shares each from their holdings in the company, following the selling by stakeholders.

Other investors, including VenturEast Proactive Fund, GKFF Ventures, and VenturEast SEDCO Proactive Fund, will also offload their shares for the OFS.

Founded in 2011, Zaggle is a spend management and corporate employee benefits platform.  The startup filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December last year.

As per its red herring prospectus (RHP), Zaggle’s profit after tax (PAT) declined to INR 22.9 Cr in the financial year 2022-23 (FY23) from INR 41.9 Cr in the previous fiscal.

Its operating revenue jumped to INR 553.5 Cr in FY23 from INR 371.2 Cr a year ago.

Besides Zaggle, traveltech startup Yatra is also set to launch its IPO this week. Its public offering consists of a fresh issue of shares, amounting to INR 602 Cr, and an OFS of 12.2 Mn shares.

The newest IPO launches come months after ideaForge saw a stellar debut on BSE and NSE in July this year.

Meanwhile, Mamaearth, which is among the other most-awaited IPOs of 2023, is said to be preparing a November listing.

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