Zaggle Shares Rise After Kedia Securities Buys Stake

Zaggle Prepaid Ocean Services shares rose 12.15% on Wednesday after Kedia Securities, owned by investor Vijay Kedia, acquired a 1.48% stake in the fintech SaaS company through a bulk deal.

Kedia Securities bought 20 lakh Zaggle shares at an average price of ₹164.72 each, taking the transaction value to ₹32.94 crore, according to bulk-deal data reported by multiple financial publications.

The purchase came after a sharp sell-off in Zaggle shares earlier in the week. The stock had fallen 20% on August 17 after the company reported a decline in first-quarter profit, while investors also reacted to developments involving an income-tax demand.

Zaggle's profit after tax fell 32.9% year-on-year to ₹17.53 crore in the first quarter of FY27 from ₹26.11 crore a year earlier, according to reporting by The Economic Times. The decline triggered heavy selling pressure and pushed the stock to a lower circuit on August 17.

Kedia Securities' purchase therefore came after the stock had reached a 52-week low of ₹154.36 on August 18, according to Mint. The bulk purchase was executed at ₹164.72 per share, above that day's low.

The market reaction was swift. Zaggle shares climbed as much as 18% during Wednesday's trading session to ₹195.70 on the BSE, according to NDTV Profit. The stock's rise followed the disclosure of Kedia Securities' stake purchase.

The transaction involved a 1.48% holding in Zaggle, making it a sizeable disclosed purchase in the company. The deal also attracted attention because it was made through an investment vehicle associated with a prominent Indian investor.

Zaggle operates in the fintech SaaS segment, providing digital solutions for corporate expense management and employee benefits. Its business combines financial technology with software services for enterprises.

The latest share-price movement needs to be viewed separately from Zaggle's operating performance. The immediate rise followed the bulk deal, while the company's recent earnings had raised concerns about profitability.

The income-tax matter has added another factor for investors to track. Zaggle's appeal against an income-tax demand of ₹4.09 crore was dismissed, according to the company-related details reported by Inc42. The development had contributed to the selling pressure earlier in the week.

The contrasting developments have placed Zaggle in focus among investors. The company is facing near-term questions around earnings and tax-related issues, while the stake purchase has generated fresh market interest.

For investors, the next focus will be whether the stock can sustain its recovery after the sharp fall earlier in the week and whether Zaggle can improve profitability in subsequent quarters. The bulk deal itself does not establish the future direction of the stock.