Zaggle signs advertising pact with BCCL, allots Rs 40 crore warrants to media major

New Delhi: Spend management firm Zaggle Prepaid Ocean Services has signed an advertising agreement with Bennett Coleman and Company (BCCL), and also executed a warrant subscription agreement to allot 7,05,467 convertible warrants to BCCL as part of its preferential issue.

As per filings, the company has entered into a warrant subscription agreement with BCCL for 7,05,467 warrants at an issue price of Rs 567 each, aggregating to Rs 40 crore, with 25% (Rs 10 crore) payable upfront.

Alongside the warrant allotment, Zaggle has also entered into an advertisement agreement with BCCL. Under this, BCCL will advertise Zaggle, its subsidiaries, and their products, services and brands across media, as per reports. 

The allotment to BCCL is part of a larger preferential issue of 10,58,201 warrants, including 3,52,734 warrants issued to promoter group entity RAN Ventures Private. The total value of the preferential issue works out to Rs 60 crore.

The warrants are convertible into an equivalent number of equity shares on payment of the balance 75% of the issue price, within 18 months from the date of allotment. The company has also said it has already received shareholders’ approval for the preferential issue, along with in-principle approvals from stock exchanges.

Separately, Zaggle’s board has also approved the incorporation of a wholly-owned subsidiary in GIFT City, Gujarat, to be named Zaggle Payments IFSC, with an authorised share capital of Rs 15,00,000. 

The company said the subsidiary will undertake the business of providing spend management solutions to corporates and their users through its online platform, subject to regulatory and other approvals.