Shares of Zaggle Prepaid Ocean Services (Zaggle) experienced a remarkable rally, surging 15%, after the company inked a strategic agreement with Visa Worldwide Pte. Limited (Visa). This new development took place shortly after the company’s initial listing on Dalal Street, where it raised an impressive Rs 563.38 crore through the sale of shares at Rs 164 apiece. The stock’s strong performance, catapulting it to an all-time high, reflects the market’s confidence in Zaggle’s prospects and its collaboration with Visa.
In a recent exchange filing, Zaggle Prepaid Ocean Services officially announced the growth agreement with Visa, valued at $20 million (Rs 166 crore). Under this agreement, Zaggle will issue various forex co-brand cards for a duration of five years. Visa has committed to paying a Launch Bonus to support the introduction of these forex cobrand cards. Additionally, they will offer incentives based on forex transaction volumes, as detailed in the agreement. Zaggle also has the opportunity to leverage its existing corporate client base to market these forex cards to employees, complementing Zaggle’s expense management solution.
Following this announcement, Zaggle Prepaid Ocean Services’ shares surged by approximately 15%, reaching a new all-time high of Rs 247.70 during Friday’s trading session. This substantial increase resulted in the company’s market capitalization exceeding Rs 2,875 crore. This performance was a significant milestone, especially considering that the stock had settled at Rs 216.20 in the previous trading session.
The company’s listing on September 22 was marked by enthusiasm, with shares trading at Rs 164 per share. Since then, the stock has exhibited robust growth, increasing by over 51% from its issue price. This surge is even more impressive when compared to its lowest point at Rs 155.60 on its first trading day, marking a substantial 60% increase.
While this deal with Visa serves as a catalyst for Zaggle’s remarkable rally, it’s important to note that the company had already shown its growth potential by announcing its earnings for the first quarter ending on June 30, 2023. Despite a year-on-year decline of more than 67% in net profit, the company displayed promising signs with a revenue from operations of Rs 118.48 crore in Q1FY24, up 33.7% from the previous year’s figure of Rs 88.62 crore. This demonstrates that Zaggle’s focus on growth and expansion remains a top priority.
