Zaggle IPO: Issue Subscribed 0.19X On Day 1, Retail Portion Receives Highest Bids

B2B SaaS fintech startup Zaggle’s initial public offering (IPO) saw a muted response on the first day on Thursday (September 14), getting subscribed 0.19X. 

The issue received bids for 37.01 Lakh shares as against 1.93 Cr shares on offer, as per BSE data. 

Retail individual investors led the way as the portion reserved for them was subscribed 0.88X at the end of the day. Retail investors placed bids for 31.13 Lakh shares as against 35.37 Lakh shares on offer.

Meanwhile, the quota for non-institutional investors (NIIs) saw a subscription of 0.11X. NIIs bid for 5.88 Lakh shares out of the 53.36 shares on offer. 

The portion for qualified institutional buyers (QIBs) saw no action as there were no takers for 1.04 Cr shares allotted for the segment on day 1. 

On Wednesday, Zaggle secured INR 253.52 Cr from 23 anchor investors at a price of INR 164 per share. Kotak Equity Opportunities Fund, Neuberger Berman Emerging Equity Fund, ICICI Prudential Technology Fund, LIC MF, IIFL, Morgan Stanley Asia (Singapore), Societe Generale, and Goldman Sachs (Singapore) were among the investors who participated in the anchor round. 

Zaggle’s IPO comprises a fresh issue of shares worth INR 392 Cr and an offer for sale (OFS) element of 10.5 Mn shares. The price band for the issue is fixed at INR 156 to INR 164. The public issue will close on September 18. The startup will list on both NSE and BSE. 

Zaggle plans to utilise the proceeds from the fresh issue of shares to fuel customer acquisition and retention, repay certain borrowing, spend more on development of technology and products, among others. 

Founded in 2011, Zaggle offers spend management solutions for enterprises and small businesses to manage corporate expenses and employee benefits. 

The Mumbai-based startup last reported a profit after tax (PAT) of INR 22.9 Cr in the financial year 2022-23 (FY23), a decline from INR 41.9 Cr in the previous fiscal year. However, operating revenue soared to INR 553.5 Cr in FY23 from INR 371.2 Cr in the previous year. 

While negative market sentiment and rout in tech stocks forced many Indian startups to shelve their IPO plans last year, the change in investor sentiment this year has led to many new-age tech companies looking to go public. While ideaForge and Yudiz have listed on the bourses this year so far, the IPO of online travel aggregator Yatra is set to open on September 15.