look news india
The new bet of well-known veteran Indian stock market investor Vijay Kedia has created a stir on Dalal Street. His investment firm Kedia Securities has acquired a small cap company in the fintech and business spend management sector. Zaggle Prepaid Ocean Services Ltd Has purchased a new stake of 1.48 percent. As soon as this big investment was revealed in the bulk deal data of the National Stock Exchange (NSE), investors started buying heavily in the company’s shares and the stock rose by 18 percent intraday and crossed ₹ 195.
Complete mathematics of bulk deal: 20 lakh shares bought for ₹32.94 crore
According to official exchange data, Kedia Securities bought 20 lakh equity shares at an average price of ₹164.72 per share through open market bulk deals. The total value of this deal is approximately ₹32.94 crore. Vijay Kedia buying a direct stake in a smallcap company is considered a positive sign in the market, as he is known to identify stocks with long-term fundamental growth.
Ashish Kacholia also has confidence: presence of two giants
Not only Vijay Kedia, but also another prominent investor of the Indian stock market, Ashish Kacholia, is already holding a bigger stake in Jagal Prepaid. With the addition of the names of two big super investors in the same smallcap company, the confidence of retail and institutional investors in this fintech-SaaS platform has increased significantly. This purchase has created a strong reversal in the stock after the temporary decline in the stock following the recent quarterly results.
What does Zaggle Prepaid Ocean Services do?
The company provides B2B fintech and Software-as-a-Service (SaaS) based corporate spend management solutions.
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Corporate Expense Management: Providing digital platforms and prepaid cards to companies to automate and track employees’ business tours, fuel, food and other official expenses.
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Employee Rewards and Incentives: Providing software tools to large corporates to distribute incentives, gift cards and benefits to their employees and channel partners.
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Strong partnerships with banks: The company issues co-branded prepaid cards in collaboration with major banks of the country (like HDFC Bank, ICICI Bank, IndusInd Bank).
Craze increased among investors from metros to tier-2 and tier-3 cities
The news of addition of new stock in Vijay Kedia’s portfolio has been felt among the retail investors of Delhi, Mumbai and Bengaluru as well as emerging cities like Lucknow, Kanpur, Jaipur, Indore, Surat and Patna. At the local level, investors are including such stocks in their watchlist where capital allocation has been done by veteran investors. However, market experts say that instead of chasing the stock (FOMO) after the entry of a big investor, it is safer to do an independent analysis of the company’s business model, cash flows and valuation.