Fintech SaaS startup Zaggle Triumphs in Stock Market Debut, INR 164 Share Price Sets the Stage

The fintech SaaS startup, Zaggle, stepped into the stock market spotlight on September 22nd, marking a significant moment with an initial listing price of INR 164 per share. The journey to this milestone was paved with impressive numbers, underscoring the company's success.

Zaggle's initial public offering (IPO) price range had been set between INR 156 and INR 164 per equity share, offering a promising start to its entry into the stock market.

The IPO, which concluded on September 18th, witnessed staggering oversubscription, standing at an impressive 12.57 times the initial offer size. The market enthusiasm was evident as the IPO garnered bids for 24.29 crore shares against the 1.93 crore shares available for subscription. Notably, this overwhelming response was largely fueled by qualified institutional buyers (QIBs).

Among the various investor segments, the institutional portion received an exceptional response, with a remarkable 16.73 times more bids than the allocated 1.04 crore shares. Non-institutional investors also demonstrated robust interest, bidding at 8.85 times their allocation of 53.37 lakh shares.

Conversely, the retail investor category experienced comparatively lower demand, with 5.94 times more bids than the 2.11 crore shares designated for them by the end of the third day of the IPO.

Zaggle, established in 2011, operates as a spend management and corporate employee benefits platform. The company specializes in automating corporate accounting processes and issuing prepaid cards in collaboration with banking partners to facilitate employee rewards, incentives, and gifts.

In the fiscal year 2021-22 (FY22), Zaggle achieved impressive financial growth, with a profit after tax (PAT) surging by 2.2 times to INR 41.92 crore from INR 19.33 crore in FY21. Moreover, revenue from operations expanded significantly to INR 371.25 crore from INR 239.97 crore in FY21, while the total revenue surged 1.5 times to INR 371.66 crore from INR 240.29 crore in the preceding fiscal year.

This achievement by Zaggle underscores the resurgence of IPOs in 2023 following a relatively subdued 2022. Zaggle's success is aligned with the trend of startups making a strong comeback through IPOs. Last week, alongside Zaggle, travel company Yatra also initiated its IPO. This year has witnessed remarkable stock market performances by companies like ideaForge, which saw a notable 94% premium upon listing, and Yudiz Solutions, which enjoyed a 12% premium on the NSE SME platform.

Looking ahead, several other startups, including Mamaearth, OYO, Navi, and GoDigit, are actively considering public listings this year, reflecting the buoyant sentiment surrounding IPOs in the current market landscape.