Zinka Logistics Solution IPO: GMP, subscription status, review, other details. Apply or not?

Zinka Logistics Solution IPO: The initial public offering (IPO) of the BlackBuck App brand owner Zinka Logistics Solutions Limited has opened today. Zinka Logistics Solution IPO will remain open for bidders until 18th November 2024. This means the public issue will remain open from Wednesday to Monday next week. The digital platform for truck operators has set the Zinka Logistics Solution IPO price band at ₹259 to ₹273 per equity share. The book build issue is a mix of fresh shares and offers for sale (OFS). The digital platform company aims to raise ₹1,114.72 crore from this book build issue, out of which ₹550 crore is aimed at issuing fresh shares.

Meanwhile, company shares are available in the grey market ahead of the issue opening. According to the stock market experts, Zinka Logistics Solution shares are available at a premium of ₹25 in the grey market today.

Zinka Logistics Solution IPO subscription status

By 3:15 PM on day 1 of bidding, the book build issue had been subscribed 0.23 times, the retail portion 0.45 times, and the NII segment 0.01 times. The QIB portion of the public issue had been booked 0.26 times.

Zinka Logistics Solution IPO details

1] Zinka Logistics Solution IPO GMP: According to the stock market experts, Zinka Logistics Solution shares are available at a premium of ₹25 in the grey market today.

2] Zinka Logistics Solution IPO price: The digital platform for truck operators has set an IPO price band of ₹259 to ₹273 per equity share.

3] Zinka Logistics Solution IPO date: The public issue has opened today and will remain open until 18th November 2024.

4] Zinka Logistics Solution IPO size: The company aims to raise ₹1,114.72 crore from this book-build issue, of which ₹550 crore is aimed at issuing fresh shares. The rest, ₹564.72 crore, is reserved for the OFS route.

5] Zinka Logistics Solution IPO lot size: Bidders can apply in lots, and one lot comprises 54 company shares.

6] Zinka Logistics Solution IPO allotment date: The likely date for share allotment is Tuesday, November 19th, 2024.

7] Zinka Logistics Solution IPO registrar: KFin Technologies has been appointed official registrar of the book build issue.

8] Zinka Logistics Solution IPO Lead Managers: Axis Capital, Morgan Stanley India, JM Financial, and IIFL Securities have been appointed Lead Managers of the public issue.

9] Zinka Logistics Solution IPO listing date: The public issue is proposed for listing on the BSE and the NSE. The likely date for a share listing is Thursday, November 21st, 2024.

Zinka Logistics Solution IPO: Apply or not?

10] Zinka Logistics Solution IPO review: Giving a 'subscribe' tag to the book build issue, Sagar Shetty, Research Analyst, StoxBox, said, "The company is well-positioned to capitalize on the market growth opportunities with its digital products, which can tackle challenges and inefficiencies and enhance value for truck operators. Financially, the company has reported a healthy revenue growth at a CAGR of 57.7% between FY22-24; however, the company has reported losses on the EBITDA / PAT front during the same period. The reason can be attributed to its high marketing and sales costs. During the quarter that ended on June 30, 2024, the company reported a positive EBITDA and PAT. The PAT growth was a one-time effect due to an exceptional item caused by the lender's waive-off of Rs. 256.23 million. The company also exhibited a steady recovery in its operational cash flow," adding, "Given its strong market presence and industry tailwinds, it provides a medium- to long-term opportunity. We, therefore, recommend a SUBSCRIBE rating for the issue."

Indsec Securities has also assigned a 'subscribe' tag saying, "At an upper price band of ₹390/sh, the IPO is priced at EV/sales of 7.8x vs listed industry peer of 17.6x on FY24 revenue. Over FY22-24, the company's revenue has grown at a CAGR of 40.4% vs 70% for Zomato. The fresh proceeds would expand the dark store's network for quick commerce growth and marketing and promotional spending. Management has also stated that the business would continue to burn cash to achieve its objective of attaining large scale coupled with increasing competitive intensity in Quick commerce. We assign a "Subscribe for long term" rating to the IPO."

In addition, Canara Bank Securities Marwadi Shares and Finance have assigned the book build issue a 'subscribe' tag.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.