Zinka Logistics IPO: Price band set at ₹259-273 apiece; check issue details, key dates, more

Zinka Logistics IPO price band: The Zinka Logistics Solution Limited IPO price band has been fixed in the range of ₹259 to ₹273 per equity share of the face value of ₹1 each. The Zinka Logistics IPO date of subscription is scheduled for Wednesday, November 13, and will close on Monday, November 18. The allocation to anchor investors for the Zinka Logistics IPO is scheduled to take place on Tuesday, November 12.

The floor price and the cap price are 259 times and 273 times the face value of the equity shares respectively. The Zinka Logistics IPO lot size is 54 equity shares and in multiples of 54 equity shares thereafter.

Zinka Logistics IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. The employees has been reserved up to 26,000 equity shares, and also a discount of ₹25 per equity share is being offered under this segment.

Tentatively, Zinka Logistics IPO basis of allotment of shares will be finalised on Tuesday, November 19, and the company will initiate refunds on Wednesday, November 20, while the shares will be credited to the demat account of allottees on the same day following refund. Zinka Logistics share price is likely to be listed on BSE and NSE on Thursday, November 21.

Zinka Logistics Solution stands as the largest digital platform for truck operators in India, with a user base of 963,345 truck operators engaging on their platform during fiscal 2024, which accounts for 27.52% of the total truck operators in the country, according to the Redseer Report referenced in its Red Herring Prospectus (RHP).

Truck operators utilise the BlackBuck mobile application (the “BlackBuck App”) to meet various business requirements. The BlackBuck App serves as a platform that offers payment solutions, telematics, a marketplace for loads, and vehicle financing services. These offerings aim to empower truck operators digitally and assist them in running their businesses effectively and efficiently. As of March 31, 2024, the company had facilitated a gross transaction value (GTV) of ₹173,961.93 million in payments.

As per the RHP, the sole listed peer in the domestic market is C.E. Info Systems Ltd (with a P/E of 92.90). The international listed peers are FLEETCOR Technologies, Inc (with a P/E of 20.20), and Full Truck Alliance Co Ltd (with a P/E of 804.77).

Zinka Logistics Solution's revenue increased by 62% in fiscal year ending 31 March, 2024 and the loss narrowed to ₹193.95 crore in 31 Mar 2024 from ₹290.5 crore in 31 Mar 2023.

Zinka Logistics IPO details

Zinka Logistics Solution IPO consists of a new issue amounting to ₹550 crore, along with an offer for sale of up to 2.07 crore shares by current shareholders and promoters. At the highest price point, the offer for sale will be valued at approximately ₹564.72 crore. The overall size of the issue will be about ₹1,114.72 crore.

The funds raised through the new issuance will be used to cover sales and marketing expenses, invest in Blackbuck Finserve to enhance its capital base for future needs, support costs associated with product development, and other general corporate activities.

Axis Capital Ltd, Morgan Stanley India Company Pvt Ltd, JM Financial Ltd, and Iifl Securities Ltd are serving as the main lead managers for the Zinka Logistics IPO, with Kfin Technologies Ltd acting as the registrar for this offering.

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