Zinka Logistics Solutions IPO: What GMP, subscription status suggests ahead of final day of bidding

Zinka Logistics Solutions IPO: The initial public offering (IPO) of Zinka Logistics Solutions Ltd, known for managing India's largest digital platform for truck operators via its BlackBuck App, has shown relatively subdued demand thus far. The ₹1,114.72 crore IPO opened for public subscription on November 13 and is scheduled to close on November 18. Investors are closely monitoring the third and final day of the bidding process on Monday, November 18, as market participants look for signs of momentum in subscription levels and interest.

Zinka Logistics Solutions' platform connects a vast network of truck operators, making it a crucial player in India's logistics ecosystem. The IPO has generated significant attention due to its status as a major digital logistics initiative, but it remains to be seen how investor sentiment will evolve leading up to the close of the offer.

Ahead of the issue’s conclusion, the market is focusing on various aspects such as the grey market premium (GMP), which provides an early indication of potential listing gains, as well as analyst reviews that assess the company's long-term growth prospects and competitive positioning.

The share allotment for the Zinka Logistics Solutions IPO is anticipated to be finalized on Tuesday, November 19, 2024, with the listing planned on the BSE and NSE on Thursday, November 21, 2024.

Zinka Logistics Solutions IPO GMP

Shares of Zinka Logistics Solutions are currently exhibiting a muted trend in the unlisted market, reflected by a subdued grey market premium (GMP). The GMP for Zinka Logistics Solutions IPO stands at ₹0 per share today, which implies that its is trading at its IPO issue price of ₹273 each in the grey market. This indicates neither a premium nor a discount to the original price during listing. Its GMP has been the same since the issue opened for subscription.

Zinka Logistics Solutions IPO Subscription Status

By the end of Day 2, the Zinka Logistics Solutions IPO showed a tepid response, with overall subscription reaching just 32 percent as of November 14. The public offer garnered bids for 72.40 lakh equity shares compared to the 2.25 crore shares available. On the first day, the issue had seen a 24 percent subscription rate.

Breaking down the categories, the retail segment witnessed 92 percent subscription, while the Non-Institutional Investors (NII) category saw just 4 percent uptake. The Qualified Institutional Buyers (QIBs) portion was subscribed at 25 percent, whereas the Employee category displayed more enthusiasm, achieving a 5.37 times subscription so far.

IPO Details

The ₹1,114.72 crore IPO is a combination of fresh issue of 2.01 crore shares aggregating to ₹550.00 crore and offer for sale of 2.07 crore shares aggregating to ₹564.72 crore.

BlackBuck IPO also raised ₹501.33 crore from anchor investors on Novemebr 12. Post the listing, promoter shareholing in the company will decline to 27.8 percent from 32.9 percent earlier.

The IPO price band has been set at ₹259 to ₹273 per share. The minimum lot size for an application is 54 Shares. The minimum amount of investment required by retail investors is ₹14,742. The issue includes a reservation of up to 26,000 shares for employees offered at a discount of ₹25 to the issue price.

The company plans to utilse the net issue proceeds for funding towards sales and marketing costs, investment in its NBFC subsidiary, funding of expenditure about product development and general corporate purposes.

Axis Capital, Morgan Stanley India Company, JM Financial and IIFL Securities are the book running lead managers of the Zinka Logistics Solutions IPO, while Kfin Technologies is the IPO registrar.

About the firm

Established in April 2015, Zinka Logistics Solutions operates as a digital platform tailored for truck operators, with its flagship offering, The BlackBuck App, providing services such as payments, telematics, a load marketplace, and vehicle financing to support efficient operations. The company reported processing a gross transaction value (GTV) of ₹173,961.93 million in payments and maintained an average of 356,050 active telematics devices monthly. By March 31, 2024, Zinka Logistics Solutions facilitated 4,035 loans amounting to ₹1,967.88 million.

In terms of financial performance, BlackBuck registered a net loss of ₹193.95 crore on revenue of ₹316.51 crore for the fiscal year ending March 31, 2024. This represented an improvement from the previous fiscal year ending March 31, 2023, when the company posted a net loss of ₹290.5 crore on revenue of ₹195.09 crore.