Zinka Logistics Solution IPO: Flipkart-backed issue to open on Nov 13—Here are top 10 things to know before subscribing

Zinka Logistics Solution IPO: The mainboard initial public offering (IPO) of the digital truck operator platform Zinka Logistics Solution Limited will hit India's primary market to open for subscription for all groups of investors on Wednesday, November 13. Zinka Logistics Solution IPO, or BlackBuck IPO, aims to raise ₹1,114.72 crore through the upcoming public 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.

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

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.

Also Read: Flipkart-backed Zinka Logistics Solutions files draft IPO papers with SEBI

Zinka Logistics Solution IPO: Here are top 10 things to know before subscribing to the issue

1. Zinka Logistics Solution IPO key dates: Zinka Logistics Solution IPO subscription period opens for three days on Wednesday, November 13, 2024, and ends on November 18, 2024. 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.

2.Zinka Logistics Solution IPO Price Band: 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.

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

3.Zinka Logistics Solution IPO Details: BlackBuck IPO is a book-built issue of ₹1,114.72 crore. The mainboard issue is a combination of 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. 

4.Zinka Logistics Solution IPO Reservation: Zinka Logistics Solution IPO 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. 

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.

Also Read: Zinka Logistics Solutions IPO GMP holds steady before issue opens this week. Check details here

5.Zinka Logistics Solution IPO lot size: 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.

6.Zinka Logistics Solution IPO Objectives: The proceeds of the issue, 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.

7.Lead Manager and Registrar of Zinka Logistics Solution IPO: 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.

8.Zinka Logistics Solution IPO Key Risks: According to the company's RHP, many vehicle tracking solutions are sourced from a few main providers. The company's business could suffer if the connection were to end. Its finance business exposes it to several risks that could negatively impact its operations, including high-risk borrowers and collateral recovery.

Also Read: IPO News Today highlights: Zinka Logistics IPO: Price band, latest GMP, 10 things to know before issue opens

9.Zinka Logistics Solution IPO Listed Peers: According to the RHP, the sole listed peer in the domestic market is CE 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).

10.Zinka Logistics Solutions IPO GMP: Zinka Logistics Solutions IPO GMP today or grey market premium is +0. According to investorgain.com, this indicates that Zinka Logistics Solutions' share price was trading flat in the grey market. The minimum GMP recorded is Re 0, while the maximum GMP has reached ₹24, as an expert from investorgain.com reported. The 'Grey market premium' indicates investors' readiness to pay more than the issue price.