The initial public offering (IPO) of Zinka Logistics Solutions (Blackbuck) opens for bidding on Wednesday, November 13. The company is offering its shares in the range of Rs 259-273 apiece, where investors can apply for a minimum of 54 equity shares and its multiples thereafter. Three-day bidding for the issue closes on Monday, November 18.
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.
The IPO of Zinka Logistics Solution includes a fresh shares sale of Rs 550 crore, while existing shareholders and promoters will offload 2,06,85,800 equity shares from their stake worth Rs 564.7 crore. At the upper end of the price band, the company will raise a total of Rs 1,114.7 crore via IPO. Anchor book for the issue shall open on Tuesday, November 12.
The net proceeds from the issue shall be utilized towards funding sales and marketing costs; investment in Blackbuck Finserve, its NBFC subsidiary; financing the augmentation of its capital base to meet its future capital requirements; funding of expenditure about product development; and general corporate purposes.
Blackbuck provides vehicle financing to customers in 48 districts across seven states in India. 963,345 truck operators in the country transacted on the platform, representing 27.52 per cent of India's total truck operators in FY24. BlackBuck shall command a total market capitalization of more than Rs 4,800 crore.
The company had processed a gross transaction value (GTV) of Rs 173,961.93 million in payments and the company had 356,050 active telematics devices on average monthly. As of March 31, 2024, the company has facilitated 4,035 loans totaling Rs 1,967.88 million.
For the financial year ended on March 31, 2024, Blackbuck reported a net loss of Rs 193.95 crore with a revenue of Rs 316.51 crore. The company reported a net loss of Rs 290.5 crore with a revenue of Rs 195.09 crore for the financial year ended on March 31, 2023.
The company has reserved 26,000 equity shares for the eligible employee qualified institutional bidders for the company, who may get a discount of Rs 25 per share. It has reserved 75 per cent of the net for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the offer. Retail investors have 10 per cent reservation in the net offer.
Axis Capital, Morgan Stanley India Company, JM Financial and IIFL Securities are the book running lead managers of the BlackBuck IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Thursday, November 21.