Zaggle Prepaid Ocean Services Limited submitted Monitoring Agency Reports for the quarter ended December 31, 2025, covering both its Initial Public Offer (IPO) and Qualified Institutional Placement (QIP). The reports, issued by CARE Ratings Limited (now CareEdge Ratings), confirm that the utilization of net proceeds for the IPO is generally in line with the stated objects, although delays in utilization timelines were noted. For the QIP proceeds, utilization aligns with the objects, including a refund of ₹36.00 crore related to a past acquisition advance.
Monitoring Agency Report Submission for Q3 FY2025-26
Zaggle Prepaid Ocean Services Limited furnished the Monitoring Agency Report for the quarter ending December 31, 2025, as required by regulations concerning its Initial Public Offer (IPO) and a separate report for its Qualified Institutional Placement (QIP). Both reports were prepared by the Monitoring Agency, CARE Ratings Limited (CareEdge Ratings), and reviewed by the Audit Committee and Board of Directors.
IPO Proceeds Utilization Status (Total Proceeds: ₹392.00 Crore)
The monitoring report confirms that the utilization of net proceeds from the IPO is in line with the objects outlined in the Offer Document. However, the agency highlighted delays in utilization compared to the timelines originally projected in the prospectus. The total projected cost for the IPO objects was ₹362.182 crore, with a revised cost of ₹362.16 crore. As of the end of the quarter, the entire amount had been utilized.
Key IPO Object Progress:
The report details progress across the four primary objects. Notably, the expenditure towards customer acquisition and retention (budgeted at ₹300.00 crore) and development of technology and products (budgeted at ₹40.00 crore) showed utilization up to the end of the quarter, resulting in zero unutilized balance for these specific items. The repayment/pre-payment of borrowings object was also fully utilized (₹17.083 crore).
For the General Corporate Purposes (GCP) (revised cost: ₹5.077 crore), the utilization noted was towards vendor payments.
Implementation Timeline Delays (IPO):
Significant delays were noted in the actual completion dates versus the offer document dates for several objects:
- Expenditure towards customer acquisition and retention completion was delayed by 67 days and 36 days across two sub-parts.
- Development of technology and products completion showed delays of 135 days and 112 days.
- Repayment/pre-payment of borrowings completion was delayed by 611 days.
- General corporate purposes completion was delayed by 633 days.
QIP Proceeds Utilization Status (Total Proceeds: ₹594.84 Crore)
The QIP utilization report indicates that the deployment of gross proceeds remains in line with the objects detailed in the Placement Document. A notable event during the quarter was the refund of ₹36.00 crore from an advance previously paid for the acquisition of Effiasoft Private Limited, which was subsequently refunded in Q3FY26 due to changes in terms.
Key QIP Object Progress:
The QIP funds were allocated towards:
- Strategic investments, acquisitions, and inorganic growth opportunities (Total proposed: ₹375.00 crore). The utilization included a payment of ₹11.31 crore for the acquisition of Greenedge Enterprises Private Limited. The Monitoring Agency flagged that the target company’s name was initially absent from the placement document, though the board later approved the acquisition.
- Pre-payment/re-payment of borrowings (Total proposed: ₹59.14 crore), which was reported as completed.
- General corporate purposes (Total proposed: ₹140.00 crore), utilized towards vendor payments related to card issuance and commissions.
- Issue related expenses (Total proposed: ₹20.70 crore), which was reported as completed.
As of the quarter-end, ₹445.18 crore of the QIP funds remained unutilized. The deployment of these unutilized proceeds was primarily in Fixed Deposits totaling ₹470.70 crore across various banks with maturities extending into 2026, yielding returns between 5.20% and 6.75%, alongside a small current account balance.
QIP Implementation Timelines:
While most QIP objects are reported as ongoing or completed, the strategic investment object remains On going, with the company planning to deploy further capital by March 31, 2026, and March 31, 2027, for the balance amounts.
Source: BSE
