Zaggle Prepaid Ocean Services IPO lists flat, then inches lower

Zaggle Prepaid Ocean Services Ltd had a literally flat listing on 22nd September 2023, listing exactly at the IPO price and then trending lower from the listing price. The closing price on 22nd September 2023 was not just below the IPO price, but also below the listing price of the day. In a sense the stock opened absolutely flat and after a volatile trading day, it closer marginally lower than the listing price. That was not surprising considering that the performance pressure on the stock of Zaggle Prepaid Ocean Services Ltd came on 22nd September 2023, when the stock markets had cracked for the third day in succession. On Friday, the Nifty fell by 68 points and the Sensex by more than 221 points. In the last 3 days, the Nifty has fallen by over 550 points and the Sensex has fallen by over 1,500 points. It is in this backdrop that the listing day performance of Zaggle Prepaid Ocean Services Ltd on 22nd September 2023 was not exactly bad, if looked at in terms of its resilience.

It must be mentioned here the Zaggle Prepaid Ocean Services Ltd did not have the benefit of any great subscription levels during the IPO. The stock had seen very modest subscription in the IPO. The subscription was 12.86X  overall and QIB subscription at 16.94X. Hence the listing was expected to be modest at best and negative at worst. However, while the listing was modest, the performance strength got reinforced during the trading day amidst the sell-off in the broader market. The fall in the stock price of Zaggle Prepaid Ocean Services Ltd  was modest and must be seen in the context of the weakness in the markets overall. Here is the Zaggle Prepaid Ocean Services Ltd listing story on 22nd September 2023.

IPO subscription and pricing details

The IPO price was fixed at the upper end of the band at ₹164 which was anyways along expected lines considering the moderate 12.86X overall subscription and the 16.94X QIB subscription in the IPO. In addition, the retail portion had got subscribed just 6.15X in the IPO while the HNI / NII portion also got a subscription of just 9.16X. The price band for the IPO was ₹156 to ₹164. On 22nd September 2023, the stock of Zaggle Prepaid Ocean Services Ltd listed on the NSE at a price of ₹164, exactly at the IPO issue price of ₹164. On the BSE also, the stock listed at ₹162, a very small discount of just -1.22% on the IPO issue price of ₹164 per share.

How the stock of Zaggle Prepaid Ocean Services Ltd closed on both exchanges

On the NSE, Zaggle Prepaid Ocean Services Ltd closed on 22nd September 2023 at a price of ₹159.50. That is a first day closing discount of -2.74% on the issue price of ₹164 and also a discount of -2.74% on the listing price of ₹164. In fact, the listing price turned out to be the approximate mid-point of the day while the closing price was very close to the low price of the day. On the BSE, the stock closed at ₹158.30. That represents a first day closing discount of -3.48% on the IPO issue price and also a discount of -2.28% on the listing price on the BSE. On both the exchanges, the stock listed flat to lower than the IPO issue price but managed to inch still lower under pressure. In fact, the opening price turned out to be the midpoint of the day between the low price and the high price while the closing price was very close to the low price of the day. Here it must be remembered that the performance by the stock on listing day has come despite a sharp fall in the Nifty and the Sensex for 3 days in a row. That is what makes the listing performance on 22nd September 2023, all the more important to the stock, and not exactly something to be disappointed about.

Price volume story on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 22nd September 2023. On Day-1 of listing, Zaggle Prepaid Ocean Services Ltd touched a high of ₹176 on the NSE and a low of ₹155.30. The stock opened flat to weak and after a volatile trading session, the stock closed nearer to the lower point of the day. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the opening price or listing price was like the midpoint of a volatile day but the stock closed very close to the low point of the day. All this happened amidst weak markets with the Nifty losing over 60 points on 22nd September 2023 and also losing over 500 points cumulatively in the last 3 days. On Day-1 of listing, the Zaggle Prepaid Ocean Services Ltd stock traded a total of 215.64 lakh shares on NSE amounting to value of ₹357.67 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the sellers. However, buying did emerge towards the end of the session with the stock closing the day with pending buy orders of 18,020 shares on the NSE.

Price volume story on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (NSE) on 22nd September 2023. On Day-1 of listing, Zaggle Prepaid Ocean Services Ltd touched a high of ₹176 on the BSE and a low of ₹155.60. It was a volatile day for the stock with the IPO listing price approximately between the high and the low of the day, although the closing price was nearer to the low price of the day. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. All this happened amidst weak markets with the Sensex losing over 220 points on 22nd September 2023 and losing over 1,550 points in the last 3 days. On Day-1 of listing, the Zaggle Prepaid Ocean Services Ltd stock traded a total of 12.49 lakh shares on BSE amounting to value of ₹20.66 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the sellers. However, buying emerged towards the end of the day with pending buy orders on the BSE at close.

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed weakness and that almost sustained till the close of the trading session on the first day of trading, although there was some late buying seen on both the exchanges. The sharp fall in the Nifty and the Sensex over the last 3 days, really did not deter the performance of the stock of Zaggle Prepaid Ocean Services Ltd on listing day, as it only closed with moderate losses. On the NSE, out of the total 215.64 lakh shares traded during the first day of trading, the deliverable quantity represented 115.39 lakh shares or a deliverable percentage of 53.51% on the NSE, which is above the routine listing day median. That shows a lot of delivery action in the counter. Even on the BSE, out of the total 12.49 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 5.71 lakh shares representing total deliverable percentage of 45.71%, well below the delivery action on the NSE. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing.

At the close of Day-1 of listing, Zaggle Prepaid Ocean Services Ltd had a market capitalization of ₹1,932.79 crore with free-float market cap of ₹309.25 crore. Zaggle Prepaid Ocean Services Ltd has issued capital of 12.21 crore shares with a par value of ₹1 per share.