Zinka Logistics Solution IPO: The mainboard initial public offering (IPO) of the digital truck operator platform Zinka Logistics Solution Limited received a tepid response on the second day of the issue and was not fully subscribed by investors. The Flipkart-backed public issue hit India's primary market on Wednesday, November 13, to open for a three-day subscription period and will close on Monday, November 18, 2024.
Zinka Logistics Solution IPO, or BlackBuck IPO, aims to raise ₹1,114.72 crore through the public issue. It has reserved not less than 75 per cent of the shares in the public issue for qualified institutional buyers (QIB), not more than 15 per cent for non-institutional Institutional Investors (NII), and not more than 10 per cent of the offer is reserved for retail investors.
Also Read: Zinka Logistics IPO: Price band set at ₹259-273 apiece; check issue details, key dates, more
On the second day of subscription, Zinka Logistics Solution IPO was booked 32 per cent by the end of the session. The portion reserved for retail investors was booked the highest among the three groups of investors at 90 per cent. The portion reserved for QIBs was booked 26 per cent and NIIs bid 0.4 per cent. The portion reserved for employees was booked 5.33 times on the second day. According to BSE data, the IPO received 72,19,044 share applications against 2,25,67,270 shares offered on Thursday. On the first day of issue, the public issue was subscribed 24 per cent.
According to stock market experts, the Zinka Logistics Solution IPO GMP, or grey market premium, dropped to ₹0 today, which shows subdued interest among investors. Flat GMP indicates a discounted listing and tepid debut of shares on stock exchanges BSE and NSE.
Zinka Logistics Solution shares are trading at ₹273 in the grey market, similar to the issue price of ₹273 per share. According to investorgain.com, the lowest GMP is Re 0, while the highest is ₹24. 'Grey market premium' indicates investors' readiness to pay more than the issue price.
BlackBuck IPO is a book-built issue of ₹1,114.72 crore. The mainboard issue combines a fresh issue of 2.01 crore shares aggregating ₹550.00 crore and an offer for sale (OFS) of 2.07 crore shares aggregating ₹564.72 crore by the current shareholders and promoters. The OFS will be valued at ₹564.72 crore at the highest price point.
For the public issue, Zinka Logistics Solution Limited's IPO price band has been fixed at ₹259 to ₹273 per equity share, with a face value of Re 1 each. The company's promoters are Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam.
The allotment for the BlackBuck IPO is expected to be finalized on Tuesday, November 19, 2024. BlackBuck IPO will list on BSE, NSE with tentative listing date fixed as Thursday, November 21, 2024.
The employees have reserved up to 26,000 equity shares, and this segment offers a discount of ₹25 per equity share. Retail investors must make a minimum investment of ₹14,742. The minimum lot size investment for big NIIs is 68 lots (3,672 shares), which is equivalent to ₹1,002,456, and for small NII, it is 14 lots (756 shares), which is equivalent to ₹206,388.
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 thereafter, it will be in multiples of 54 equity shares.
The issue proceeds, up to ₹200 crore, will finance sales and marketing expenses. ₹140 crore will be invested in its NBFC subsidiary, Blackbuck Finserve Private Ltd, to expand its capital base to meet future capital requirements. ₹75 crore will be used for product development and general corporate purposes.
Axis Capital Limited, Morgan Stanley India Company Pvt Ltd, Jm Financial Limited, and IIFL Securities Ltd are the book-running lead managers of the BlackBuck IPO, while Kfin Technologies Limited is the registrar for the issue.
The Bengaluru-based company is the largest digital platform for truck operators in India, with a user base of 963,345 truck operators engaging on its platform during fiscal 2024. According to its Red Herring Prospectus (RHP), this accounts for 27.52 per cent of the total truck operators in the country.
Truck operators utilise the BlackBuck mobile application (the ‘BlackBuck App’) to meet their business requirements. The BlackBuck App serves as a platform that offers payment solutions, telematics, a marketplace for loads, and vehicle financing services. The offerings aim to empower truck operators digitally and assist them in running their businesses efficiently.
As of March 31, 2024, the company had facilitated a gross transaction value (GTV) of ₹173,961.93 million in payments. Zinka Logistics' average monthly transacting truck operators increased its commission income, subscription fees, and service fees. As a result, the company's consolidated revenue from continuing operations increased by 69.01 per cent to ₹296.92 crore in fiscal 2024 from ₹175.68 crore in Fiscal 2023.
