Bengaluru-based Zinka Logistics Solutions, the country’s leading platform for truck operators has announced a price band of Rs 259-273 for its upcoming initial public offering (IPO), which will open for subscription on November 13.
The offer comprises a fresh issue of shares amounting to Rs 550 crore and an offer for sale (OFS) by the selling shareholders of up to 2,06,85,800 shares of the company, which are valued at Rs 564.72 crore at the upper limit of the price band.
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At this upper limit of the price band, the total size of the IPO stands at Rs 1,114.72 crore.
The issue will open for the anchor investors on November 12, a day before it opens for the retail investors and will be available till November 18. Bids can be made for a minimum quantity of 54 shares and in multiples of 54 thereof.
Under the OFS component, Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, Ramasubramanian Balasubramaniam, Accel India IV (Mauritius), Quickroutes International, International Finance Corporation, Internet Fund III Pte, Sands Capital Private Growth II, Peak XV Partners Investments VI (formerly SCI Investments VI) and VEF AB (publ) will be offloading their stake in the company.
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Not less than 75% of the total issue has been reserved for qualified institutional buyers (QIBs), not more than 15% for non-institutional investors (NIIs) and up to 10% of the issue for the retail investors. Up to 26,000 equity shares have been reserved for the employees.
The proceeds from its fresh issuance will be utilised for funding towards sales and marketing costs, investment in Blackbuck Finserve for financing the augmentation of its capital base to meet its future capital requirements, and for expenditure in relation to product development and general corporate purposes.
Zinka Logistics is dedicated to transforming the trucking industry in India by digitally empowering truck operators to manage their businesses and increase their earnings. The company’s innovative BlackBuck app serves as a comprehensive platform, providing solutions for payments, telematics, load management, and vehicle financing.
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The BlackBuck app, central to Zinka Logistics’ offerings, empowers truck operators to manage various aspects of their operations. Through the app, operators can handle payments for tolling and fueling, monitor drivers and fleets using telematics, find loads on the marketplace, and access financing for purchasing used vehicles.
In FY24, the app saw robust engagement, with monthly active truck operators using it for over 16.18 days per month and spending an average of 39.56 minutes daily on the platform.
Zinka Logistics processed a gross transaction value (GTV) of Rs 17,396.19 crore in payments for FY24. The payments platform addresses significant expenses for truck operators, such as tolls and fuel.
The company’s consolidated revenue from continuing operations increased by 69.01% to Rs 296.92 crore in FY24 from Rs 175.68 crore in FY23, primarily due to an increase in its average monthly transacting truck operators, which led to an increase in its commission income, subscription fees, and service fees.
Axis Capital, Morgan Stanley India, JM Financial, and IIFL Securities are the book-running lead managers and KFin Technologies is the registrar of the offer.
