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The initial public offering (IPO) of Zinka Logistics Solutions Ltd., which operates the BlackBuck platform, sailed through on the third and final day of the bidding process, thanks to the last day bidding from the institutional investors.
The three-day bidding for the issue, which began on November 13, concludes today.
As per the data from NSE, investors made bids for 4.17 crore equity shares, or 1.85 times, compared to the 2.25 crore equity shares offered for the subscription by 4:40 pm on Monday, November 18.
The allocation for qualified institutional buyers (QIBs) was booked 2.76 times, while the quota reserved for the retail investors saw a subscription of 1.62 times. The allocation for employees was booked 9.74 times. However, the quota set aside for non-institutional investors (NIIs) saw 0.23 times biding.
The grey market premium (GMP) for Zinka Logistics has been falling consistently amid the volatile market sentiments. Last heard, the company was commanding a no premium in the unofficial market. The GMP stood at ₹24, before the issue kicked-off for the bidding.
Zinka Logistics sold its shares in a fixed price band of ₹259-273 per share, where investors placed bids for a minimum of 54 equity shares in one lot and its multiples thereafter.
The IPO included a mix of fresh offer of up to ₹550 crore and an offer for sale of up to 2.06 crore equity shares by Promoter and Investor Selling Shareholders.
Proceeds from its fresh issue will be utilised 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.
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 three-day bidding for the issue, which began on November 13, concludes today.
As per the data from NSE, investors made bids for 4.17 crore equity shares, or 1.85 times, compared to the 2.25 crore equity shares offered for the subscription by 4:40 pm on Monday, November 18.
The allocation for qualified institutional buyers (QIBs) was booked 2.76 times, while the quota reserved for the retail investors saw a subscription of 1.62 times. The allocation for employees was booked 9.74 times. However, the quota set aside for non-institutional investors (NIIs) saw 0.23 times biding.
The grey market premium (GMP) for Zinka Logistics has been falling consistently amid the volatile market sentiments. Last heard, the company was commanding a no premium in the unofficial market. The GMP stood at ₹24, before the issue kicked-off for the bidding.
Zinka Logistics sold its shares in a fixed price band of ₹259-273 per share, where investors placed bids for a minimum of 54 equity shares in one lot and its multiples thereafter.
The IPO included a mix of fresh offer of up to ₹550 crore and an offer for sale of up to 2.06 crore equity shares by Promoter and Investor Selling Shareholders.
Proceeds from its fresh issue will be utilised 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.
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.
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