Zaggle Shares Slip 4% After INR 2.6 Cr GST Penalty

Shares of fintech SaaS major Zaggle slipped 4% to INR 346.10 during the morning trade on the BSE today (February 27), a day after an INR 2.6 Cr penalty was imposed by the Additional Commissioner, Rangareddy, Telangana under the IGST Act. 

The company in an exchange filing said that it received an order summary stating the penalty in relation to the assessment proceedings conducted for overriding commission for the financial year 2017-18.

Zaggle said that it is planning to challenge the penalty as it expects a favourable outcome at the appellate level and does not foresee any material financial impact.

At the time of writing, its shares recovered some losses and were trading 2.74% lower at INR 349.80. However, with a drop in its share price, Zaggle’s market capitalisation stood at INR 4,694 Cr at 10:40 AM. 

At the current market price, it has given a return of over 6% in the last one year but in the past month it lost more than 21%. The stock has ended in red on the BSE in three out of the seven last sessions. 

Founded in 2011 by Raj Narayanam, Zaggle provides a spend management and corporate employee benefits platform. Its offerings help businesses automate their accounts and issue prepaid cards. Its portfolio of SaaS products also includes tax and payroll software. 

A couple of days ago, Zaggle said it bagged a three-year contract from Honasa Consumer, the parent company of D2C brands such as Mamaearth, The Derma Co, BBlunt, Dr. Sheth’s, Aqualogica and Ayuga. The development led to a surge in its share price on Tuesday (February 25). 

The company also signed a deal with Indus Towers Limited to provide the latter with its employee expense management and benefits platform Zaggle Save.

The company made its stock market debut in 2023 with its shares listing flat at INR 164 apiece on the BSE.