1 week ago
The initial public offering (IPO) of Zinka Logistics Solutions Ltd., a digital platform for truck operators, will open for subscription on November 13 and close on November 18. The company aims to raise ₹1,115 crore through the issue and list the shares on both the BSE and NSE.
Zinka Logistics has fixed a price band of ₹259-273 per share for its initial share sale, where investors can bid for a minimum of 54 equity shares in one lot and in multiples thereafter.
Zinka Logistics IPO GMP
The unlisted shares of Zinka Logistics are trading at a premium of ₹24 — representing a 9% gain over the IPO's upper price band — in the grey market.
The public offer includes a fresh issue of shares worth ₹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 ₹565 crore at the upper price band.
Zinka Logistics IPO structure
The offer is being made through the book-building process, wherein not less than 75% of the net offer will be available for allocation on a proportionate basis to qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail individual investors.
A discount of ₹25 per equity share is being offered to eligible employees bidding in the employee reservation portion.
Zinka Logistics IPO objective
Proceeds from its fresh issue will be used to the extent of ₹200 crore for funding towards sales and marketing costs, ₹140 crore for investment in Blackbuck Finserve Pvt. Ltd. for financing the augmentation of its capital base to meet its future capital requirements, ₹75 crore for funding of expenditure in relation to product development, and general corporate purposes.
Comparison with peers
There are no like to like listed companies in India or abroad that engage in a business similar to that of the company. However, for the purposes of the Red Herring Prospectus, the following companies (Indian and foreign) have been considered as peers of the company, considering similarities with certain offerings of their business.
Business overview
Incorporated in April 20, 2015, Zinka Logistics Solutions Ltd. is touted to be the country's largest digital platform for truck operators (in terms of number of users), with 963,345 truck operators in the country transacting on their platform in fiscal 2024, which comprises 27.52% of India’s truck operators.
Using the company's platform, their customers (primarily comprising truck operators) digitally manage payments for tolling and fueling, monitor drivers and fleets using telematics, find loads on their marketplace and get access to financing for the purchase of used vehicles.
Truck operators use the BlackBuck mobile application for their diverse business needs.
The company's gross transaction value (GTV) in payments was ₹5,356 crore and ₹17,396 crore in the three months ended June 30, 2024 and fiscal 2024, respectively.
For the three months ended June 2024, the company's revenue from continuing operations stood at ₹92.17 crore with a profit after tax of ₹28.67 crore.
Axis Capital Ltd., Morgan Stanley India Company Pvt. Ltd., JM Financial Ltd. and Iifl Securities Ltd. are the book running lead managers to the BlackBuck IPO, while Kfin Technologies Ltd. is the registrar.
The allotment for the BlackBuck IPO is expected to be finalised on November 19, while the company's shares will list on BSE, NSE with tentative listing date fixed as November 21, 2024.
