Zinka Logistics Solution IPO day 2: GMP, review to subscription status. Buy or not?

Zinka Logistics Solution IPO: The initial public offering (IPO) of Zinka Logistics Solution Limited hit the Indian primary market on 13th November 2024 and will remain open until 18th November 2024. The digital platform for truck operations, which owns the BlackBuck App, has fixed the Zinka Logistics Solution IPO price band at ₹259 to ₹273 per equity share. The company aims to raise ₹1,114.72 crore from this public issue, a mix of fresh shares and Offer for Sale (OFS). Zinka Logistics Solution IPO subscription status suggests the initial offer has received a tepid response from investors. Meanwhile, the grey market sentiment has decreased after intensified selling in the Indian stock market.

Zinka Logistics Solution IPO GMP today

According to stock market observers, Zinka Logistics Solution IPO GMP (Grey Market Premium) today is zero, compared to ₹25 on Wednesday. This means Zinka Logistics Solution IPO GMP has tumbled after day 1 of bidding. Currently, the company's shares are trading at par, and the grey market is predicting Zinka Logistics Solution IPO listing price to be at par with the upper price band of ₹273 per equity share.

Market experts said that Zinka Logistics Solution IPO GMP tumbled after investors' tepid response and intensified selling in the Indian secondary market. They said that weakness on Dalal Street led to this, as investors were in a wait-and-see mode.

Zinka Logistics Solution IPO subscription status

By 3:33 PM on day 2 of bidding, the book build issue had been subscribed 0.31 times, the retail portion 0.86 times, and the NII segment 0.03 times. The QIB portion of the public issue had been booked 0.26 times.

Zinka Logistics Solution IPO review

Anand Rathi has given a 'subscribe' tag to the public issue, saying, "Zinka Logistics Solutions Ltd is India's largest digital platform for truck operators (in terms of number of users), with 963,345 truck operators in the country transacting on its platform in FY24, which comprises 27.52% of India's truck operators. The company generates revenue from truck operators through commission income from the company's payment offerings, subscription fees from a combination of telematics, payments and loads marketplace offerings and service fees from vehicle financing offerings. In terms of the financial aspect, from being a loss-making entity, the company turned profitable in Q1FY25. At the upper price band, the company is valuing at Mcap/Sales of 16.2x on an FY24 basis with a market cap of ₹48,178 million post-issue of equity shares. On the valuation front, the company is fairly priced. Therefore, we recommend a "SUBSCRIBE - Long term" rating for the IPO."

Master Capital Services has also assigned a 'subscribe' tag to the public issue, saying, "India's growing economy needs the support of robust logistical capabilities, and the Indian trucking industry stands as a vital component of the nation's logistics sector. The Indian trucking sector is a US$18 to US$25 billion revenue pool in Fiscal 2024 and is expected to reach US$35 billion by Fiscal 2028. Trucking in India is highly fragmented, making their operations inefficient. Innovating digital products to tailor solutions for meeting truckers' specific needs and scaling these offerings through strong distribution networks can unlock significant opportunities. Zinka Logistics Solution Limited, one of India's largest digital platforms for truck operators, offers accessible solutions for Indian truck operators. The company intends to continue to focus on growing its customer base by attracting new transacting truck operators to the platform. The company is also focused on growing its loads marketplace and vehicle finance verticals through investments in product and technology. Investors looking to invest can invest in the IPO for the long term."

In addition, Canara Bank Securities, Marwadi Shares and Finance, StoxBox, Adroit Financial Services, Arihant Capital Markets have assigned the book build issue a 'subscribe' tag.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.