Zinka Logistics IPO: Raises Rs 501.33 Crore from Anchor Investors Ahead of Rs 1,114 Crore Market Debut

Zinka Logistics Solutions raised Rs 501.33 crore from institutional investors through its anchor book ahead of its IPO, which opens on November 13. The IPO aims to raise Rs 1,114.72 crore, with a price band of Rs 259 to Rs 273 per share. Proceeds will be used for sales, marketing, and product development, with shares listing expected on November 22.

• Zinka Logistics IPO opens today.
• BlackBuck raises INR 501 crore.
• Zinka Logistics raises Rs 501 crore.

Zinka Logistics IPO: Raises Rs 501.33 Crore from Anchor Investors Ahead of Rs 1,114 Crore Market Debut

Zinka Logistics IPO opens today

Zinka Logistics IPO: Raises Rs 501.33 Crore The initial public offering (IPO) of Zinka Logistics Solutions Limited, the owner of the BlackBuck App brand, opened today and will remain open until November 18, 2024. The IPO offers a price range of ₹259 to ₹273 per equity share and consists of a mix of fresh shares and an offer for sale (OFS). The company aims to raise ₹1,114.72 crore, with ₹550 crore allocated for fresh shares and ₹564.72 crore for the OFS.

As of 11:54 AM on the first day of bidding, the IPO had been subscribed 0.05 times overall, with the retail portion subscribed 0.27 times and the NII segment subscribed 0.01 times. The shares are currently trading at a ₹25 premium in the grey market.

Key IPO details include:

– Price Band: ₹259 to ₹273 per share

– IPO Size: ₹1,114.72 crore, including ₹550 crore in fresh shares

– Lot Size: 54 shares per lot

– Allotment Date: November 19, 2024

– Listing Date: November 21, 2024, on BSE and NSE

– Lead Managers: Axis Capital, Morgan Stanley India, JM Financial, and IIFL Securities

– Registrar: KFin Technologies

Analysts have largely given the IPO a positive outlook. Sagar Shetty, a research analyst at StoxBox, recommends subscribing, highlighting the company’s strong market position and growth potential, despite some losses on the EBITDA and PAT front in recent years. Other analysts, including Indsec Securities, also recommend subscribing for long-term investment due to the company’s growth trajectory and competitive positioning in the logistics sector.

 

BlackBuck raises INR 501 crore

Zinka Logistics IPO: Raises Rs 501.33 Crore  Logistics unicorn BlackBuck raised INR 501.33 crore from anchor investors ahead of its initial public offering (IPO). These investors subscribed to 1.83 crore equity shares at INR 273 each. Nomura was the largest investor, contributing INR 67.87 crore for 24.86 lakh shares. Invesco followed with an investment of INR 49.86 crore, acquiring 18.26 lakh shares. SBI, through two funds—SBI Innovative Opportunities and SBI Technology Opportunities Fund—invested INR 67.88 crore for 24.91 lakh shares. Other investors included Ashoka, Steadview, Hornbill Orchid, and Bandhan Bank. Three domestic mutual funds received a total of 61.39 lakh shares for INR 167.60 crore.

BlackBuck is aiming to raise INR 1,114.72 crore from its IPO, which closes on November 18. The issue includes a fresh equity share offering of INR 550 crore and an offer for sale of 2.06 crore shares. The IPO’s price band is set at INR 259 to INR 273 per share. Notably, the company has reduced its valuation ahead of the offering, with an upper valuation of INR 4,817 crore, down by about 35% from its previous private valuation when it achieved unicorn status.

Founded in 2015 by Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam, BlackBuck operates an online B2B marketplace for inter-city full truck load (FTL) transportation. The platform offers services like payment solutions, load marketplace, and vehicle financing to truck operators. It claims a 27% market share among truck operators in India. The company reported a net profit of INR 28.67 crore in Q1 FY25, with operating revenue of INR 92.16 crore.

 

Zinka Logistics raises Rs 501 crore

Zinka Logistics IPO: Raises Rs 501.33 Crore  Zinka Logistics Solutions, the company behind the BlackBuck platform for truck operators, raised Rs 501.33 crore from institutional investors through its anchor book on November 12, ahead of its IPO opening on November 13. The Bengaluru-based firm plans to raise Rs 1,114.72 crore through the IPO, with a price range set between Rs 259 and Rs 273 per share. The IPO comprises a fresh issue of Rs 550 crore in shares and an offer-for-sale (OFS) of 2.06 crore shares worth Rs 564.72 crore.

The company allocated 1,83,63,915 shares to anchor investors at Rs 273 each. Notable institutional investors participating in the anchor round include Nomura, Hornbill Orchid India Fund, Steadview Capital Mauritius, TIMF Holdings, Florida Retirement System, Massachusetts Institute of Technology, Carmignac Portfolio, BNP Paribas Funds, Pinebridge Global Funds, and Societe Generale. Domestic institutional investors like SBI Mutual Fund, Invesco India, Bandhan Mutual Fund, ICICI Prudential Life Insurance, Ashoka Whiteoak, SBI General Insurance, and Nuvama Multi Asset Strategy Return Fund also participated.

A total of 61.39 lakh shares were allocated to three domestic mutual funds across six schemes. The BlackBuck app offers services such as payments, telematics, load marketplace, and vehicle financing. The platform saw more than 9.63 lakh truck operators transact on it in FY24, representing 27.52% of India’s truck operators, a significant increase from previous years.

The offer-for-sale portion of the IPO includes shares from promoters Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, Ramasubramanian Balasubramaniam, and investors like Quickroutes International (formerly Flipkart Logistics), Accel India, International Finance Corporation, Internet Fund, Peak XV Partners Investments, VEF AB (publ), and Sands Capital.

The company plans to use Rs 415 crore of the fresh issue proceeds for sales and marketing, capitalizing its NBFC subsidiary Blackbuck Finserve, and product development. The remaining funds will be used for general corporate purposes. The IPO will close on November 18, with shares expected to list on the BSE and NSE on November 22.

The merchant bankers managing the issue are Axis Capital, Morgan Stanley India, JM Financial, and IIFL Capital Services.