Zaggle Prepaid stock jumps over 14% on signing $20 mn deal with Visa

Zaggle Prepaid Ocean Services stock made a new all-time high, soaring 14.5 percent to Rs 247.7 after the company bagged a $20 million (Rs 166 crore) deal from Visa Worldwide to issue various forex co-brand cards.

Visa will pay the bonus for supporting the launch of Forex co-brand cards and will also pay incentives on Forex transactions based on spending commitments.

“Zaggle can leverage its existing corporate base to sell forex cards to employees of the corporate client and it can be tightly coupled with Zaggle expense management Solution. The deal size is approximately 20 Million dollars in the next 5 years,” Zaggle said in an exchange filing.

Though the stock made a muted debut on bourses last month, with today’s surge, Zaggle shares are now up over 51 percent from the IPO price of Rs 164. The public offer received a decent response from investors, with the issue getting subscribed 12.86 times. The Rs 563.38 public offer comprised a fresh issue of shares worth Rs 392 crore and an offer-for-sale (OFS) of shares worth Rs 171.38 crore.

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Earlier this week, the company reported a 67.4 percent year-on-year (YoY) fall in its net profit at Rs 2.05 crore in the quarter ended June 2023 from Rs 6.3 crore in the year-ago period. However, revenue from operations rose 33.7 percent to Rs 118.48 crore from Rs 88.62 crore the previous year.

Zaggle Prepaid Ocean Services Limited (ZPOSL) is among a small number of uniquely positioned players with a diversified offering of fintech products and services, having one of the largest numbers of issued prepaid cards in India in partnership with certain of its banking partners and a diversified portfolio of SaaS, including tax and payroll software.