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Zinka Logistics Solutions IPO Listing: The shares were listed at Rs 280.90 apiece on the NSE, which is a 2.89 per cent premium over the IPO issue price of Rs 273.
Zinka Logistics Solutions IPO Listing.
Zinka Logistics Solutions IPO Listing: Zinka Logistics Solutions Ltd (or BlackBuck Ltd) was on Friday saw a positive listing on major stock indices BSE and NSE. The shares were listed at Rs 280.90 apiece on the NSE, which is a 2.89 per cent premium over the IPO issue price of Rs 273. The shares later turned red falling up to 8.98 per cent to Rs 260.2 apiece, as compared to its day’s high of Rs 285.9 apiece.
On the BSE, the shares were listed at Rs 279.05 apiece, which is a 2.21 per cent profit over the issue price.
The IPO was originally listed on Thursday but was later postponed its listing to Friday. As per norms, a company is mandated to list its shares within three days of the IPO closing date (T+3).
The listing gain comes after the GMP that had indicated a flat listing or negative listing for the IPO.
The initial public offering of digital platform for truck operators Zinka Logistics Solutions Ltd was opened for subscription between November 13 and November 18. The Rs 1,100-crore IPO received a 1.87 times subscription garnering bids for 4,19,43,258 shares as against the 2,24,70,786 shares on offer.
Zinka Logistics Solutions IPO: What Should Investors Do?
Shivani Nyati, head of wealth at Swastika Investmart Ltd, said, “While the positive listing is encouraging, it’s crucial for investors to conduct thorough due diligence and assess the company’s long-term growth prospects…. Investors should remain cautious due to the company’s past financial challenges, including losses and negative cash flow, and the ongoing legal challenges.”
The company’s strong network effects and position as a leading platform in the logistics industry have likely contributed to the positive listing, she added.
Zinka Logistics Solutions IPO: More Details
Zinka Logistics Solutions had 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 was 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.
