The initial public offer (IPO) of BlackBuck platform operator Zinka Logistics, which opened for subscription earlier today, has been subscribed by 21% so far on the first day of the bidding process.
Around 1:15 pm, the issue had attracted 46,70,514 bids out of the total 2,25,67,270 available for subscription. The highest demand was driven by the retail investors subscribing to the issue by 35%, followed by the qualified institutional buyers (QIBs)
with a subscription of 26%.
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Meanwhile, the non-institutional investors (NIIs) had subscribed to the issue by merely 1%.
The qualified institutional buyers (QIBs) are yet to subscribe to the issue.
The issue, which is a combination of a fresh equity sale of Rs 550 crore and an offer for sale (OFS) of 2.06 crore shares, will be available for bidding till November 18.
Ahead of the issue opening, the company bagged Rs 500 crore from anchor investors where marquee investors including Nomura, Hornbill Orchid India Fund, Steadview Capital Mauritius, TIMF Holdings, and Florida Retirement System among others participated.
Zinka Logistics IPO: Allotment and Listing DateThe allotment for the IPO will be completed on November 19 and the listing is scheduled for November 21.
Zinka Logistics IPO: GMP todayThe GMP of Zinka Logistics is currently Rs 0 in the unlisted markets, which indicates a premium of 0% over the issue price.
Zinka Logistics IPO: Price band Zinka Logistics has fixed a price band of Rs 259-273 per share, where investors can bid for 54 shares in one lot and multiples thereafter.
Zinka Logistics IPO review Analysts advised investors to subscribe to the issue given BlackBuck’s strong market position, scalable asset-light model, and high growth potential
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“The IPO is recommended as a favorable investment in the logistics tech sector. However, the company should be monitored closely for regulatory changes and competitive pressures that could impact its profitability and market share,” said Canara Bank Securities.
“We assign a Subscribe rating to this IPO as the company has India’s largest digital platform for truck operators and omnichannel distribution network driving sales. Also, it is available at a reasonable valuation as compared to its peers,” said Marwadi Financial Services.
About Zinka Logistics 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.
