Finkhoz Roboadvisory Services
7 Oct • 12:37 PM · SEBI-Registered Analyst
Zaggle Prepaid rises on new Abu Dhabi subsidiary plan
!ZAGGLE Prepaid Ocean Services Limited (ZAGGLE) rose 1.57% to ₹174.70 on the BSE on October 7 after its board approved a new wholly owned subsidiary in the Abu Dhabi Global Market (ADGM). The board approved the plan at its October 6 meeting. The new entity, Zaggle Holding Limited, will work in fintech, SaaS and AI, and also act as a holding company for investments in group and third-party entities. Zaggle runs spend-management and prepaid card products for businesses. The move gives Zaggle a base in the UAE, one of the region's main fintech hubs. A holding company there could support overseas expansion and future investments or acquisitions. However, the filing gives no details on capital commitment, revenue targets or specific deals. For now, it is a structural step, not a business win. The modest gain reflects that. The stock has lost nearly half its value over the past year and trades well below its 52-week high of about ₹405. At a market cap of around ₹2,310 crore, Zaggle reported Q1 FY27 revenue of ₹429.86 crore and profit of ₹17.53 crore. A new subsidiary alone does not address the concerns behind the sharp fall. Investors should watch for details on capital allocation to the UAE unit, any overseas client wins or acquisitions, and Q2 FY27 revenue growth and margins. The key question is whether this expansion adds meaningful revenue or just adds to costs. Disclosure: I do not hold any position in Zaggle Prepaid Ocean Services Limited. This post is for informational purposes only and is not investment advice.
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