Zaggle Prepaid Ocean Services Limited Reports on Fund Utilization for IPO and QIP Proceeds
Zaggle Prepaid Ocean Services Limited has received its Monitoring Agency Report from CARE Ratings Limited regarding the utilization of proceeds raised through its Initial Public Offer (IPO) and Qualified Institutional Placement (QIP). The reports cover the quarter ended June 30, 2026.The monitoring review details the progress of fund deployment across various corporate objects for both fundraising initiatives.
IPO Proceeds Utilization Update
Pertaining to the IPO, which raised an issue size of Rs. 392.00 crores, the Monitoring Agency noted that the utilization of net proceeds was generally in line with the specified objects of the offering.However, the report highlighted a deviation concerning the use of General Corporate Purposes (GCP). The company utilized Rs. 11.05 excess under GCP. Management attributed this excess usage to lower issue-related expenses compared to the estimates provided in the Prospectus. This specific expenditure of Rs. 11.05 was noted as vendor payments in other expenses during the quarter. It is important to note that requisite approvals for this deviation have not been received.
QIP Proceeds Deployment Details
For the Qualified Institutional Placement (QIP), which raised funds amounting to Rs. 594.84 crore, the monitoring agency assessed the progress against the stated objects. The utilization status showed progress in deployment across different heads of expenditure.Key observations related to the QIP include:
- Strategic Investments: Original cost was set at Rs. 375.00 crores. As of the end of the quarter, an amount of Rs. 157.93 crores had been utilized against this object.
- General Corporate Purposes (GCP): The proposed cost for GCP was Rs. 140.00 crores. The utilization at the end of the quarter stood at Rs. 10.67 crores.
- Borrowing Repayment: The planned repayment or pre-payment of outstanding borrowings, set at Rs. 59.14 crores, showed zero utilization during the reporting period.
The monitoring report noted that in relation to 'Strategic investments, acquisitions and inorganic growth opportunities by our Company and our Subsidiary, Span Across IT Solutions Private Limited (SAISPL),' there were issues regarding fund movement. The agency reported that funds intended for this object were transferred from the dedicated monitoring account to the company's current account, leading to a commingling of funds with other business transactions.
Summary of Object Costs and Utilization
The financial metrics detailing the proposed costs and progress of utilization across both IPO and QIP objects are presented below:IPO Proceeds Monitoring Details
| Item Head | Original Cost (in Rs. Crore) | Revised Cost (in Rs. Crore) | Status/Observation |
|---|---|---|---|
| Customer Acquisition & Retention | 300.00 | 300.00 | Utilization in line with objects. |
| Technology and Product Development | 40.00 | 40.00 | Utilization in line with objects. |
| Repayment of Borrowings | 17.083 | 17.083 | Utilization in line with objects. |
| General Corporate Purposes (GCP) | 5.099 | 5.077 | Rs. 11.05 excess utilized under GCP, pending requisite approvals. |
| Total | 362.182 | 362.160 |
QIP Proceeds Monitoring Details
| Item Head | Original Cost (in Rs. Crore) | Utilized at Quarter End (in Rs. Crore) | Remaining Unutilized Amount (in Rs. Crore) |
|---|---|---|---|
| Strategic Investments (SAISPL) | 375.00 | 157.93 | 217.07 |
| Repayment of Borrowings | 59.14 | 0.00 | 59.14 |
| General Corporate Purposes (GCP) | 140.00 | 10.67 | 129.33 |
| Issue Related Expenses | 20.70 | 0.00 | 20.70 |
| Total | 594.84 | 168.60 | 426.24 |
ZAGGLE Stock Price Movement
Today, Zaggle Prepaid Ocean Services Limited saw its shares climb, closing at ₹200.59 after gaining 0.23%. The stock traded within a day range of ₹199.76 to ₹203.76 and accounted for 778,513 in total volume.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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