Techknowgreen Solutions Limited, an environmental consulting firm, has announced it will go public with an Initial Public Offering (IPO) opening for subscription on Monday, September 18, 2023. The company aims to raise Rs 16.72 crore ($2.2 million) through the IPO, with shares to be listed on the BSE SME platform. The funds raised will be utilized for research and development initiatives, infrastructure expansion, hiring and resourcing, repayment of bank loans, and general corporate purposes.
Dr. Ajay Ojha, Managing Director at Techknowgreen Solutions Limited said that the IPO funding will enhance their capabilities to expand their reach to clients across different industries. Prasad Pawar, CEO and Director at Technowgreen Solutions Limited, also stated that the IPO is an opportunity for them to enhance their scale and visibility.
Meanwhile, SaaS-based fintech platform Zaggle Prepaid Ocean Services faced a subdued response to its IPO on Thursday. The IPO only garnered a 43% subscription at the end of the second day of bidding. Retail investors showed relatively strong support for the IPO, subscribing to 1.9 times their reserved portion. However, high-net-worth individuals (non-institutional investors) and Qualified Institutional Buyers (QIB) showed limited interest.
The IPO aims to raise Rs 563.38 crore ($75 million) through a combination of a fresh issuance of shares worth Rs 392 crore ($52 million) and an offer-for-sale (OFS) of 1.04 crore shares valued at Rs 171.38 crore ($23 million). The funds raised from the fresh issue will be utilized for customer acquisition and retention, technology and product development, debt repayment, and general corporate expenses.
Despite the lukewarm response to the IPO, Hem Securities has assigned a long-term "subscribe" rating to the IPO, citing Zaggle's differentiated SaaS-based fintech platform, which offers a combination of payment instruments, mobile applications, and API integrations. The brokerage highlights the company's in-house technology, strong network effect, diversified revenue sources, and low customer acquisition and retention costs as appealing factors.
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