Unlisted shares of Zinka Logistics Solutions Ltd continue to trade at the same price in the grey market, signalling a subdued listing.
Zinka Logistics Solutions IPO (or BlackBuck IPO): The initial public offering of digital platform for truck operators Zinka Logistics Solutions Ltd, which opened on Wednesday for public subscription, has so far received around 25 per cent subscription till the early hours of the second day of bidding. Its latest GMP was also at zero, which indicates subdued listing.
The IPO, whose price band has been fixed at Rs 259-273 per share, will be concluded on Monday, November 18.
Till 10:19 am on the second day of bidding on Thursday, the IPO received 0.26 times subscription garnering bids for 58,83,624 shares as against the 2,24,70,786 shares on offer.
The portion for qualified institutional buyers (QIBs) has been subscribed by 0.25 times, while the category for retail individual investors (RIIs) received 0.63 times subscription. Non-institutional investors part fetched 0.02 times subscriptions.
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Zinka Logistics Solutions IPO GMP Today
According to market observers, unlisted shares of Zinka Logistics Solutions Ltd continue to trade at the same price in the grey market as its issue price. The zero grey market premium or GMP means the grey market is expecting a subdued listing.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Zinka Logistics Solutions IPO: Key Dates
The Zinka Logistics Solutions IPO, or BlackBuck IPO, will remain available for public subscription between November 13 and November 18. Its share allotment will be finalised on November 19, while the listing will take place on November 21.
Zinka Logistics Solutions IPO: Lot Size and Price
The price band of the BlackBuck IPO has been fixed at Rs 259 to Rs 273 per share. The minimum lot size for an application is 54 shares. The minimum amount of investment required by retail investors is Rs 14,742. The minimum lot size investment for small NII is 14 lots (756 shares), amounting to Rs 2,06,388, and for big NII, it is 68 lots (3,672 shares), amounting to Rs 10,02,456.
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Zinka Logistics Solutions IPO: Quota
The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.
Zinka Logistics Solutions IPO: Analysts’ Recommendations
Bajaj Broking has granted a ‘subscribe for long term’ to the IPO.
“Zinka Logistics Solution Ltd. (ZLSL) is India’s largest digital platform for truck operators by user count, with 963,345 truck operators using its platform in Fiscal 2024, representing 27.52% of the country’s truck operators,” it added.
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit/ – (loss) of Rs. 156.13 cr. / Rs. – (230.35) cr. (FY22), Rs. 195.09 cr. / Rs. – (236.85) cr. (FY23), and Rs. 316.51 cr. / Rs. – (166.99) cr. (FY24). For Q1 of FY25 ended on June 30, 2024, it posted a net profit of Rs. 32.38 cr. on a total income of Rs. 98.33 cr. Thus it has turned the corner from Q1 of ongoing fiscal. But, it will take some time to wipe out its carried forward losses.
“The company is a leading digital platform for truck owners, offering a comprehensive range of related services under one roof. It reported losses until FY24 but turned profitable starting in Q1-FY25. Based on annualised earnings for FY25, the issue seems aggressively priced. Investors who are well-informed, have surplus cash, and are willing to take risks might consider allocating moderate funds for the long term,” Bajaj Broking said in its IPO note.
Read More: Zinka Logistics IPO Day 1: Check GMP, Price Band, Subscription, Key Dates, Review,
Zinka Logistics Solutions IPO: More Details
Zinka Logistics Solutions on Tuesday mobilised over Rs 501 crore from anchor investors, a day before its initial share-sale opening for public subscription.
The IPO is a combination of a fresh issue of shares worth Rs 550 crore and an offer of sale (OFS) of up to 2.06 crore shares. The OFS by promoters and investor selling shareholders is valued at Rs 565 crore at the upper end of the price band.
A discount of Rs 25 per equity share is being offered to eligible employees bidding in the employee reservation portion.
Proceeds from the fresh issuance to the extent of Rs 200 crore will be used for sales and marketing initiatives; Rs 140 crore for investment in Blackbuck Finserve for financing the supporting the capital base to meet future capital requirements; Rs 75 crore for funding of expenditure in relation to product development, and a portion will be used for 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 BlackBuck app serves as a comprehensive platform, providing solutions for payments, telematics, load management and vehicle financing.
The Bengaluru-based firm processed a Gross Transaction Value (GTV) of Rs 5,356.20 crore and Rs 17,396.19 crore in payments in the three months ended June 30, 2024, and fiscal 2024, respectively. The payments platform addresses significant expenses for truck operators, such as tolls and fuel.
The company partners with FASTag banks and multiple oil marketing companies (OMCs) to offer efficient and secure tolling and fuelling solutions, generating revenue through commission margins based on transaction values.
For the three months ended June 2024, the company’s revenue from continuing operations stood at Rs 92.17 crore with a profit after tax of Rs 28.67 crore.
Axis Capital, Morgan Stanley India Company, JM Financial and IIFL Capital Services are the book-running lead managers to the issue.
