Zaggle raises ₹98 crore pre-IPO at ₹164 a share

What Zaggle announced on Tuesday

Zaggle Prepaid Ocean Services Ltd said it raised ₹25 crore from ValueQuest Scale Fund in a pre-IPO funding round. The company said this infusion was done through an equity share issuance to the fund. In its public statement, Zaggle disclosed that it issued 15,24,390 equity shares to ValueQuest. The shares were issued at a price of ₹164 per share. The announcement adds to a broader set of fund-raising steps the company has taken ahead of its initial public offering.

The two-tranche pre-IPO placement: ₹98 crore total

Zaggle said the latest ₹25 crore round follows a ₹73 crore raise completed through private placement last week. With these two tranches, the company’s combined pre-IPO fund raise stands at ₹98 crore. The placement price across the fund raise was ₹164 per equity share. The company also disclosed that the ₹164 issue price included a share premium of ₹163 per equity share. In total, the pre-IPO placement involved 59,75,609 equity shares across two tranches.

Who participated in the first tranche

In the first tranche, Zaggle raised ₹73 crore from a set of investors. The company’s disclosures included two large allocations in that tranche: ₹30 crore each from market investor Ashish Rameshchandra Kacholia and Bengal Finance & Investment Pvt Ltd. These allocations were for over 18.29 lakh shares each, as per the information shared. Other investors mentioned in connection with the first tranche include Himanshi Kela, Absolute Returns Scheme, Vikasa India EIF I Fund – Incube Global Opportunities, and Acintyo Investment Fund PCC – Cell 1. The company has positioned these funds as part of its pre-IPO capital build-up.

ValueQuest Scale Fund’s allocation in the second tranche

The second tranche consisted of a ₹25 crore allotment to ValueQuest SCALE Fund. Zaggle said it allotted 1,524,390 equity shares to ValueQuest at ₹164 per share. This tranche is the one specifically referenced in the company’s Tuesday statement. Taken together with the prior tranche, the placement closed at ₹98 crore in total. The participation of ValueQuest also shows continuity, as Valuequest Scale Fund is listed among the investors that later participated via the anchor book.

Where the IPO stands: DRHP filing and issue structure

Zaggle filed its draft papers with the Securities and Exchange Board of India (SEBI) in December 2022 to raise funds through an IPO. Based on the draft papers referenced, the IPO comprises two parts. The first is a fresh issue of equity shares worth ₹490 crore. The second is an offer for sale (OFS) component of 1.05 crore shares by promoters, investors and other shareholders. The company has indicated specific uses for the fresh-issue proceeds, including customer acquisition and retention, technology and product development, debt payment, and general corporate purposes.

Anchor book fund raise ahead of IPO opening

Separately, Zaggle Prepaid Ocean Services raised ₹253.52 crore from 23 anchor investors on September 13, a day before the company’s IPO opens. The company said it finalised allocation of 1,54,58,515 equity shares to anchor investors at a price of ₹164 per share. Investors named as participants in the anchor book include Morgan Stanley Asia (Singapore), Matthews Asia Funds, Neuberger Berman Emerging Markets Equity Fund, Eastspring Investments India Fund, Astorne Capital VCC – Arven, Copthall Mauritius Investment, Societe Generale, Goldman Sachs (Singapore), and Natixis International Funds. Other investors listed include Kotak Equity Opportunities Fund, ICICI Prudential, LIC Mutual Fund, Abakkus Diversified Alpha Fund, Turnaround Opportunities Fund, Elara India Opportunities Fund, Valuequest Scale Fund, Founders Collective Fund, and Ananta Capital Ventures Fund.

Timeline signals: board and shareholder approvals

The pre-IPO funding round was stated to have been executed in line with approvals at the board and shareholder levels. The company said the placement followed the endorsement of the board and shareholders during meetings held on August 10 and 11, 2023, respectively. This provides a clearer sequence around how the company structured its capital raising ahead of the IPO process. It also ties the private placement to a formal corporate approval cycle, rather than being a one-off transaction.

Key numbers at a glance

Market impact: what the disclosures tell investors

The disclosures give investors a clear view of pre-IPO pricing and demand at ₹164 per share across multiple stages. The ₹98 crore pre-IPO placement establishes an equity issuance benchmark that matches the anchor allocation price reported later. The company has also outlined intended uses for the fresh issue portion of the IPO, including customer acquisition, technology and product development, and debt repayment. While the announcements do not provide operating metrics, they do show how the company structured fundraising via private placement, anchor allocation, and the planned public issue. For IPO-bound investors, these details matter because they indicate issue composition and potential dilution from the fresh issue component.

Why this fund raise matters

Zaggle’s pre-IPO raise highlights a structured approach to capital raising ahead of a public listing. The company raised capital in two tranches, with named investors and disclosed allocations, and later completed a sizeable anchor placement. The issue structure in the draft papers indicates a mix of growth capital through a ₹490 crore fresh issue and a partial exit route via the OFS of 1.05 crore shares. These are concrete signals for how proceeds and share supply are planned under the IPO framework. The next key checkpoints, based on the information provided, are the IPO opening following the anchor allocation and subsequent disclosures tied to the public issue process.