Zinka Logistics Solution IPO: Flipkart-backed issue raises ₹501.33 crore via anchor investors ahead of public issue

Zinka Logistics Solution Limited, the operator of the BlackBuck app, a payments platform which caters to truck operators, raised ₹501.33 crore from investors in its anchor round ahead of the public issue, according to the company's BSE filing on Tuesday, November 12.

As per the exchange filing, the company has allocated 1,83,63,915 or 1.83 crore equity shares to the anchor investors at an allocation price of ₹273 per share to 26 anchor investors at a face value of ₹1 per share. 

The anchor investor pool in Zinka Logistics Solution's IPO includes SBI Mutual Fund, Nomura Trust, Invesco India, Bandhan Mutual Fund, ICICI Prudential Life Insurance, Ashoka Whiteoak, Florida Retirement System, Steadview Capital Mauritius, and Massachusetts Institute of Technology Retirement Trust, etc.

As per the exchange filing data on Tuesday, SBI Innovative Opportunities Fund at 7.98 per cent, The Nomura Trust and Banking Co. Ltd at 13.54 per cent, Invesco India Contra Fund at 9.95 per cent, Bandhan Core Equity Fund at 6.96 per cent, and Steadview Capital Mauritius at 5.76 per cent, were the top anchor investors in the anchor issue. 

The payments platform company also said that 33.43 per cent of the allocation to anchor investors was allocated to three domestic mutual funds through a total of six schemes, according to the exchange filing.

“In terms of financial aspect, from being a loss making entity, company turned profitable in Q1FY25. At the upper price band company is valuing at Mcap/Sales of 16.2x on FY24 basis with a market cap of ₹48,178 million post issue of equity shares. On the valuation front, we believe that the company is fairly priced. Therefore, we recommend a 'SUBSCRIBE - Long term' rating to the IPO,” said Anand Rathi Research Team in an analyst report. 

About Zinka Logistics Solution IPO

Zinka Logistics Solution IPO will open for public bidding on Wednesday, November 13, and close on Monday, November 18. The company has set the price band in the range of ₹259 to ₹273 per share, with a lot size of 54 shares per lot.

The shares are expected to be listed on the NSE and BSE indices on Thursday, November 21. 

The money raised from the public issue 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. 

Zinka Logistics has set aside not less than 75 per cent of the shares for Qualified Institutional Buyers (QIB), not more than 15 per cent for Non-Institutional Investors (NII), and not more than 10 per cent for the retail investors.

Axis Capital Limited, Morgan Stanley India Company Pvt Ltd, JM Financial Limited and IIFL Securities Ltd are the book runners for the public issue, while Kfin Technologies Limited is the registrar.