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Zaggle Prepaid more-than-doubles over issue price amid solid order inflow

Shares of Zaggle Prepaid Ocean Services zoomed 16.7 per cent to Rs 335.15 per share, also its all-time high, on the BSE on Monday amid robust business outlook

Zaggle Prepaid Ocean Services Limited

Zaggle Prepaid Ocean Services Limited

SI Reporter New Delhi

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Shares of Zaggle Prepaid Ocean Services zoomed 16.7 per cent to Rs 335.15 per share, also its all-time high, on the BSE on Monday amid robust business outlook.

The stock of the IT services companies were trading 14 per cent higher at Rs 327.45 per share at 2:26 PM as against a 0.26 per cent dip in the benchmark S&P BSE Sensex. Over the past one month, the stock has surged 28 per cent as against a around 2 per cent gain in the benchmark indices.

The spurt comes amid a string of orders that the company won during the month of February. 

Among the lot, the company informed the exchanges on February 24 that it has contracted to be a Co-brand partner with Nishi Forex, which is an Authorised Dealer-II for forex card, to carry out activities such as sales and distribution, marketing, and campaigning bundled with Zaggle expense management to drive card spends & greater usage of the software.

Subject to the Reserve Bank of India's approval, the product launch will be done in due course, the company said. 

"Zaggle can leverage existing Corporate base to sell forex cards to employees of the Corporate client, and it can be tightly coupled with Zaggle expense management software. The period of the contract is five year," it added.

That apart,  it, separately, entered into an agreements with Emcure Pharmaceuticals Limited; Benetton India Pvt. Ltd; Wipro Ltd; and Arcadis Consulting India Private Limited;(to provide the companies with the Zaggle Save proposition, a Benefits & Expense management platform.

Besides, it will provide Easy Trip Planners Limited with Integrated Travel & Expense Management Solutions to Corporate Clients for a period of three years. 

Zaggle Prepaid Ocean Services Limited has also entered into an agreement with Quess Corp Limited from February 14, 2024 to January 31, 2025. The size of the order is Rs 10 crore per annum.

Earlier in February, it signed contracts with Axis Bank, and Lifestyle International Private Limited.

Zaggle Prepaid Ocean Services has uniquely positioned players with a diversified offering of fintech products and services, having one of the largest number of issued prepaid cards in India in partnership with certain of banking partners, a diversified portfolio of SaaS, including tax and payroll software, and a wide touchpoint reach.

It debuted on the bourses on September 22, 2023 at the issue price of Rs 164 per share. With today's gain, the stock has more-than-doubled over its issue price (up 110 per cent)

Zaggle reported a 92.7 per cent jump in net profit to Rs 19.5 crore for the third quarter of FY24 compared to Rs 10.1 crore in the year-ago period. Higher other interest income on increased cash or bank balances post IPO and a drop in finance cost following repayment of debt helped boost the profit, the company said.

Adjusted operating profit or Ebitda rose by 56.4 per cent to Rs 22.86 crore in the third quarter compared to Rs 14.62 crore a year ago.

55 per cent of Zaggle's shareholding belongs to public shareholders. Besides, ace investor Ashish Kacholia held a 1.8 per cent stake in the company pre-IPO. 

That stake stood at 1.7 per cent at the end of the September quarter, which was increased to 2.2 per cent during the December quarter.

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First Published: Feb 26 2024 | 2:52 PM IST

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