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Monitoring Agency Report - IPO (₹392 Crore)

Issuer Details

  • Name: Zaggle Prepaid Ocean Services Limited
  • Industry/Sector: IT Services – IT Enabled Services
  • Promoters: Raj P. Narayanam; Avinash Ramesh Godkhindi
  • Issue Period: September 14, 2023 to September 18, 2023
  • Issue Type: Initial Public Offer (IPO)
  • Issue Size: ₹392.00 crores

Key Findings

  • Deviation from objects: Company utilized ₹11.05 crore excess under General Corporate Purposes (GCP)
  • Reason for deviation: Lower issue-related expenses compared to estimated level disclosed in Prospectus
  • Approval status: Requisite approvals for excess utilization not received
  • Range of deviation: Up to 10%
  • Major deviations observed: Yes, deviations reported in monitoring agency reports for Q4FY26 and Q4FY25
  • Delays in utilization: Significant delays compared to timeline mentioned in offer document

Object-wise Utilization (IPO)

| Object | Original Cost (₹ Cr) | Revised Cost (₹ Cr) | Beginning Q1 FY27 (₹ Cr) | Utilized Q1 FY27 (₹ Cr) | End Q1 FY27 (₹ Cr) | Unutilized (₹ Cr) |

| Customer acquisition & retention | 300.00 | 300.00 | 300.000 | 0.000 | 300.000 | 0.000 |

| Technology development | 40.00 | 40.00 | 40.000 | 0.000 | 40.000 | 0.000 |

| Borrowing repayment | 17.083 | 17.083 | 17.083 | 0.000 | 17.083 | 0.000 |

| General Corporate Purposes | 5.099 | 5.077 | 5.077 | 0.000# | 7.114 | -2.037# |

| Total | 362.182 | 362.160 | 362.160 | 0.000# | 364.197 | -2.037# |

# Company utilized ₹11.05 excess under GCP during quarter as vendor payment reimbursement

Implementation Delays (IPO)

| Object | Offer Document Timeline | Actual Completion | Delay |

| Customer acquisition & retention | March 31, 2024 | June 06, 2024 | 67 days |

| Customer acquisition & retention | March 31, 2025 | May 06, 2025 | 36 days |

| Technology development | March 31, 2024 | August 13, 2024 | 135 days |

| Technology development | March 31, 2025 | July 21, 2025 | 112 days |

| Borrowing repayment | March 31, 2024 | December 02, 2025 | 611 days |

| General Corporate Purposes | March 31, 2024 | December 24, 2025 | 633 days |

GCP Utilization Details (IPO)

  • Vendor Payment: ₹0.000^ (during quarter)
  • Total GCP Utilization: ₹0.000^

^ Company utilized ₹11.05 towards vendor payment under admin expenses but reported as ₹0.000 in GCP table

Monitoring Agency Report - QIP (₹594.84 Crore)

Issuer Details

  • Name: Zaggle Prepaid Ocean Services Limited
  • Industry/Sector: IT Services – IT Enabled Services
  • Promoters: Raj P. Narayanam; Avinash Ramesh Godkhindi
  • Issue Period: December 18, 2024 to December 23, 2024
  • Issue Type: Qualified Institutional Placement (QIP)
  • Issue Size: ₹594.84 crores

Key Findings

  • Deviation from objects: No deviation from objects
  • Utilization delay: Yes, delay in utilization under strategic investments and GCP objects
  • Fund comingling: Company transferred funds from monitoring account to current account, resulting in comingling with other business transactions
  • Major deviations: No deviation from previous monitoring agency reports

Object-wise Utilization (QIP)

| Object | Original Cost (₹ Cr) | Beginning Q1 FY27 (₹ Cr) | Utilized Q1 FY27 (₹ Cr) | End Q1 FY27 (₹ Cr) | Unutilized (₹ Cr) |

| Strategic investments & acquisitions | 375.00 | 121.52 | 36.41 | 157.93 | 217.07 |

| Borrowing repayment | 59.14 | 59.14 | 0.00 | 59.14 | 0.00 |

| General Corporate Purposes | 140.00 | 10.67 | 0.00 | 10.67 | 129.33 |

| Issue related expenses | 20.70 | 20.70 | 0.00 | 20.70 | 0.00 |

| Total | 594.84 | 212.03 | 36.41 | 248.44 | 346.40 |

Q1 FY27 Utilization Details (QIP)

  • Rivpe Technologies acquisition: Acquired 12,511 CCPS for ₹10.32 crore
  • Software purchase from Dice Enterprises: Purchased intangible asset (software) for ₹26.72 crore
  • Paid ₹16.08 crore from current account with reimbursement next day
  • Balance ₹10.64 crore set off against loan given to DEPL (₹10.01 crore principal + interest)
  • Received reimbursement of ₹10.01 crore (loan principal) in current account

Unutilized Funds Deployment (QIP)

| Instrument | Bank | Amount (₹ Cr) | Maturity Date | Return (%) | Market Value (₹ Cr) |

| Fixed Deposit | AU Small Finance Bank | 40.00 | August 19, 2026 | 6.30% | 90.00 |

| Fixed Deposit | AU Small Finance Bank | 10.10 | June 09, 2027 | 7.90% | 10.10 |

| Fixed Deposit | AU Small Finance Bank | 15.50 | July 27, 2026 | 6.75% | 15.50 |

| Fixed Deposit | AU Small Finance Bank | 75.00 | August 12, 2026 | 6.40% | 75.00 |

| Fixed Deposit | AU Small Finance Bank | 75.00 | November 12, 2026 | 6.50% | 75.00 |

| Fixed Deposit | ICICI Bank | 100.00 | August 26, 2026 | 6.75% | 100.00 |

| MA Account | ICICI Bank | 69.92 | - | - | 69.92 |

| Less: Interest Earned | - | 39.06 | - | - | - |

| Less: Excess bank receipt | - | 0.06 | - | - | - |

| Total | | 346.40 | | | 385.52 |

Interest Earned Timeline (QIP)

  • Q4 FY25: ₹2.90 crore
  • Q1 FY26: ₹9.81 crore
  • Q2 FY26: ₹7.55 crore
  • Q3 FY26: ₹6.77 crore
  • Q4 FY26: ₹3.74 crore
  • Q1 FY27: ₹8.29 crore

Implementation Delays (QIP)

| Object | Offer Document Timeline | Actual Status | Delay |

| Strategic investments | March 31, 2026 | Ongoing | Delay (exact days unascertainable) |

| Strategic investments | March 31, 2027 | Ongoing | Not applicable |

| Borrowing repayment | March 31, 2025 | December 27, 2024 | No delay |

| General Corporate Purposes | March 31, 2026 | Ongoing | Delay (exact days unascertainable) |

| General Corporate Purposes | March 31, 2027 | Ongoing | Not applicable |

Specific Delay Details (QIP)

  • Strategic investments: Proposed ₹175 crore by March 31, 2026, deployed ₹121.52 crore (shortfall ₹53.48 crore)
  • General Corporate Purposes: Proposed ₹50 crore by March 31, 2026, deployed ₹10.67 crore (shortfall ₹39.33 crore)

Disclaimer Notes

  • Monitoring Agency does not perform audit or independent verification
  • Reports based on information provided by issuer and sources believed to be accurate
  • No responsibility for loss or damage from use of information
  • No conflict of interest declared
  • Board of Directors comments sections not reviewed by Monitoring Agency