Zaggle Prepaid Ocean Services Limited has successfully completed its warrant allotment process, marking a significant milestone in its fundraising initiative. The company allotted 10,58,201 warrants on December 16, raising ₹15.00 crore as the initial subscription amount.

Warrant Allotment Completion

The board of directors completed the allotment of warrants following approvals from the Extraordinary General Meeting held on October 31 and in-principal approval from both NSE and BSE. The warrants were issued at ₹567 per warrant, with allottees paying 25% of the issue price upfront as per SEBI regulations.

Allottee Breakdown

The warrants were distributed between two strategic investors as planned:

Conversion Terms and Lock-in

Each convertible warrant entitles the holder to apply for one equity share of face value Re. 1 each. The allottees must pay the remaining 75% of the issue price within 18 months from the allotment date to convert the warrants into equity shares. The warrants issued on preferential basis will be locked-in for the specified period as per SEBI regulations.

Regulatory Compliance

The allotment was completed in accordance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The company confirmed that there is no change in the paid-up share capital as only convertible warrants have been allotted at this stage.

Additional Financial Initiative

Alongside the warrant allotment, Zaggle has also entered into a loan agreement with Dice Enterprises Private Limited, providing up to ₹15 crore for working capital purposes. This 12-month loan carries a 12% per annum interest rate and is repayable on demand.

The successful completion of the warrant allotment demonstrates Zaggle's ability to execute its capital raising plans and strengthens its financial position for future growth initiatives.

Zaggle Prepaid Ocean Services has announced a strategic move to strengthen its position in the loyalty and rewards segment. The company's board has approved the acquisition of Greenedge Enterprises Private Limited, a niche player in golf-based corporate engagement, for a consideration of up to ₹25 crore.

Acquisition Details

The board of Zaggle has given the green light for the following transactions:

1. Acquisition of 1,30,000 equity shares, representing 100% of Greenedge's issued and paid-up capital, for a consideration of up to ₹25 crore.
2. An additional investment of up to ₹25 crore in Greenedge, to be made in one or more tranches.

Strategic Rationale

Zaggle's decision to acquire Greenedge is aimed at enhancing its product portfolio in the loyalty and rewards segment. The acquisition is expected to give a significant boost to Zaggle's 'Propel' offering, while also strengthening its position in the travel segment.

About Greenedge Enterprises

Greenedge Enterprises, incorporated on March 9, 2009, specializes in providing solutions for golf travel, experiences, and access-based rewards. The company operates exclusively in the B2B sector, focusing on golf and other rewards and benefits in partnership with RuPay Card (NPCI).

Financial Performance

Greenedge has shown impressive growth over the past three years:

Transaction Timeline and Structure

The acquisition is expected to be completed within 45 days. Zaggle will acquire 1,30,000 equity shares of Greenedge, each with a face value of ₹10. Additionally, Zaggle plans to invest in 1,62,548 equity shares of Greenedge, also with a face value of ₹10 each.

Regulatory Compliance

The company has confirmed that this acquisition does not fall under related party transactions, and no governmental or regulatory approvals are required for the deal.

This strategic move by Zaggle underscores the company's commitment to expanding its footprint in the loyalty and rewards sector, particularly in niche areas like golf-based corporate engagement. As the fintech landscape continues to evolve, such acquisitions may play a crucial role in shaping the future of customer engagement and rewards programs in India.