In Thursday’s trading session, the shares of one of the leading IT stocks specialised in providing automated solutions for business expense management in focus following the customer service agreement with Narayana Hrudayalaya Limited.
Price action
With a market capitalization of 6,895.39 Crores on Thursday, the shares of Zaggle Prepaid Ocean Services Ltd declined by 5 percent after making a low of Rs 533.05 compared to its previous closing price of Rs 561.10.
What happened
Zaggle Prepaid Ocean Services Limited specialised in providing automated solutions for business expense management has entered into a customer service agreement with Narayana Hrudayalaya Limited.
As per agreement Zaggle will provide Narayana Hrudayalaya with its Zaggle Save solution, which focuses on employee expense management and benefits. This contract is domestic in nature and is set to run until March 31, 2027.
Zaggle Prepaid Ocean Services Ltd initiated a Qualified Institutional Placement to raise Rs 450 crore, with the potential to increase the fundraising to Rs 750 crore.
The indicative price for the QIP was set at Rs 523.2 per share, reflecting a 6.75 percent discount to the last closing price of Rs 561.1 on the NSE and SEBI-mandated floor price for the issue is Rs 550.73 per share.
About the company
Zaggle Prepaid Ocean Services Limited one of the leading IT stocks and prominent players in the field of digital financial services, focusing on offering prepaid card solutions and other payment-related services.
The company specializes in providing innovative prepaid card products that cater to both individual consumers and businesses, helping to streamline transactions and enhance the digital payment experience.
The company aims to simplify financial processes for its users while supporting a wide range of sectors, including corporate businesses, government institutions, and retail customers.
Shareholding Pattern
As of the September 2024 shareholding pattern, Zaggle Prepaid Ocean Services Limited’s majority stake is held by the promoters at 43.88 percent, Foreign Institutional Investors (FII) hold around 6.14 percent, Domestic Institutional Investors (DII) hold around 10.69 percent and the public with 39.27 percent. Furthermore, Ashish Kacholia holds a 2.37 percent stake in this company.
Prominent Partners and Clients
Key customers of Zaggle Prepaid Ocean Services Ltd include Hiranandani, Tata Steel, and Greenply. The company collaborates with prominent partners such as DBS, Kotak, IndusInd Bank, Visa, and Mastercard.
Financials
The company’s revenue rose by 66 percent from Rs 184.91 crore to Rs 308.57 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 7.59 crores to Rs 20.29 crore during the same period.
Key Financial ratios
Zaggle Prepaid Ocean Services Limited has an Return on Equity (RoE) of 11.53 percent and a Return on Capital Employed (RoCE) of 15.68 percent. Furthermore, the company’s debt-to-equity ratio is 0.11.
Written by Sridhar J
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