Shares of Zinka Logistics Solutions are set to make its Dalal Street debut on Friday, November 22. The company is likely to have a soft landing at Dalal Street, if one goes by the muted signals from Dalal Street. Interestingly, the stock might also have a discounted stock market debut, if the selling pressure persists for the day.
Ahead of listing, shares of Zinka Logistics Solutions were commanding no grey market premium (GMP) following the muted subscription and weak market sentiments. The muted trends from the unofficial market suggested towards a dull listing for the investors later today.
Zinka Logistics indicates a potential for a flat or even negative listing, said Shivani Nyati, Head of Wealth at Swastika Investmart. "The low promoter holding further adds to investor skepticism. Given the company's financial performance, operational challenges, and the lack of a clear valuation metric, investors are advised to exercise caution," she said.
The IPO of Bengaluru-based Zinka Logistics Solutions was open for bidding between November 13 and November 18. It had offered its shares in the price band of Rs 259-273 per share with a lot size of 54 shares. It raised a total of Rs 1,114.72 crore via IPO, which included a fresh share sale of Rs 500 crore and offer-for-sale (OFS) of up to 2,06,85,800 shares worth Rs 564.72 crore.
The issue was overall subscribed merely 1.86 times. The allocation for the qualified institutional bidders (QIBs) was subscribed 2.76 times The portion allocated for retail investors was subscribed 1.66 times. Employee portion was booked 9.88 times. However, The portion for non-institutional investors (NIIs) remained undersubscribed with only 24 per cent bids.
Zinka Logistics is headed for a muted opening, which could likely be attributed to the weak market sentiments and the company’s high valuation concern, said Sagar Shetty, Research Analyst at StoxBox. "We believe that participants who have been allotted the shares hold it from a medium to long-term horizon, given the company’s robust growth potential," he said.
Founded in April 2015, Zinka Logistics Solution is a digital platform for truck operators. Its The BlackBuck App is a platform offering payments, telematics, a load marketplace, and vehicle financing services to empower truck operators to achieve their goals efficiently.
Brokerages had a positive view on the issue and suggested subscribing for a long term. Axis Capital, JM Financial, Morgan Stanley India and IIFL Securities were the book running lead managers of the BlackBuck IPO, while Kfin Technologies was enacted as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.