Zaggle Prepaid Ocean Services Limited , a player in the prepaid services sector, has announced a significant move to bolster its financial position. The company's board has given the green light for a fundraising initiative through the issuance of warrants, aiming to secure ₹59.99 crore.

Warrant Issue Details

The board of Zaggle Prepaid Ocean Services has approved the issuance of up to 10,58,201 warrants, each priced at ₹567. This strategic decision was made during a board meeting held on October 3. The warrants will be issued on a preferential basis to both the Promoter Group and Non-Promoter entities.

Key Points of the Warrant Issue

• Number of Warrants: Up to 10,58,201
• Price per Warrant: ₹567 (including a premium of ₹566)
• Total Fundraising Target: ₹59,99,99,967
• Conversion Ratio: Each warrant is convertible into 1 fully paid-up equity share
• Face Value of Resulting Shares: ₹1 per share

Investors and Regulatory Approval

The warrant issue will be directed towards two key investors:

1. RAN Ventures Private Limited (Member of Promoter Group)
2. Bennett Coleman and Company Limited (Non-Promoter)

This preferential allotment is subject to regulatory and statutory approvals, including the green light from the company's shareholders at an upcoming Extraordinary General Meeting (EGM).

Upcoming Extraordinary General Meeting

Zaggle Prepaid Ocean Services has scheduled an EGM for October 31. The meeting will be conducted through video conferencing or other audio-visual means, where the company will seek necessary approvals from its members for this fundraising initiative.

Regulatory Compliance

The company has emphasized that this move is in accordance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The relevant date for this issue, as per SEBI regulations, has been set as October 1.

Additional Financial Move

In a separate development, Zaggle Prepaid Ocean Services has also entered into a loan agreement with Dice Enterprises Private Limited. The company will provide a loan of up to ₹15 crore to Dice Enterprises for working capital purposes. This 12-month loan carries an interest rate of 12% per annum and is repayable on demand.

These strategic financial moves by Zaggle Prepaid Ocean Services indicate the company's efforts to strengthen its capital base and support its business operations. Investors and market watchers will be keenly observing how these initiatives impact the company's growth trajectory in the coming months.

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.