The shares that flooded the market were gobbled up by ICICI Prudential, ACM Global Fund, Astorne Capital, and Tara Emerging Asia Liquid fund. The block deal comes only days after brokerage Equirus Securities launched coverage on Zaggle with an INR 400 price objective, a 30% increase over the stock’s last closing on May 3. In the third quarter of FY24, Zaggle’s net profit increased by more than tenfold to INR 15.2 crore, while operating revenue increased by 35.1% to INR 199.5 crore.
Early-stage venture capital firm Ventureast sold 22.27 lakh shares of fintech SaaS startup Zaggle in a block sale valued INR 67.26 crore.
According to NSE records, Ventureast Proactive Fund LLC sold the shares for INR 302 each on Thursday (May 2). ICICI Prudential, ACM Global Fund, Astorne Capital, and Tara Emerging Asia Liquid Fund all bought up the newly available shares.
While ICICI Prudential acquired 11.58 lakh shares for roughly INR 35 crore, ACM Global purchased 4.06 lakh shares for INR 12.26 crore. Similarly, Astorne Capital and Tara Emerging Asia Liquid Fund each acquired 3.31 lakh shares for INR 10 crore.
Ventureast owned 3.64%, or 44.54 lakh shares, of the fintech SaaS company at the end of the March 2024 quarter.
The block deal occurred only days after brokerage Equirus Securities launched coverage of the listed startup with a ‘LONG’ rating and a price target of INR 400, representing a more than 30% increase from the stock’s previous close on the BSE on Friday (May 3).
The brokerage stated that Zaggle has no significant competition with a presence in all three of its product groups, and that its revenue streams are diverse through different channels, with a robust growth pipeline.
Zaggle’s net profit increased by more than ten times year on year (YoY) to INR 15.2 crore in the third quarter (Q3) of the fiscal year 2023-24. Meanwhile, operating revenue increased 35.1% to INR 199.5 crore during the period under review, compared to INR 147.6 crore in the same quarter of the previous fiscal.
Based on these two considerations, the company’s shares have been rising on the bourses. The stock is up more than 37% year to date (YTD).
Zaggle, founded in 2011, is a platform for managing spending and corporate employee perks. It enables businesses to automate their accounts and issue prepaid cards in collaboration with banking partners to reward their staff with incentives and gifts.
The finance SaaS business made its stock market debut last year.
Zaggle competes for a share of the bigger expenditures management industry, which was estimated to be worth INR 8,200 crore in FY21 and is expected to grow to INR 13,900 crore by FY27, according to one analysis.
On May 3, shares of the financial SaaS startup closed 1.32% higher at INR 306.15 on the BSE.
