Shares of Zinka Logistics Solution, also known as BlackBuck, are scheduled to list on the stock exchanges on Thursday, November 21, following the completion of allotment on Tuesday, November 19.

The Zinka Logistics Solution IPO, which opened for subscription on Wednesday, November 13, and closed on Monday, November 18, received a favorable response across investor categories.

By the final bidding day, Qualified Institutional Buyers (QIBs) subscribed 2.76 times, retail investors 1.66 times, and non-institutional investors 24%. The employee portion was oversubscribed, reaching 9.88 times. Overall, the IPO saw a subscription status of 1.86 times by the third day, as per BSE data.

Here are the top 8 things to know before Zinka Logistics Solution Listing

Zinka Logistics Solutions IPO Size

The Bengaluru-based company targets to raise 1,114.72 crore through its initial public offering which comprises a Rs 550-crore fresh issue, and Rs 564.72-crore offer-for-sale at the upper price band.

Zinka Logistics Solutions Latest GMP

The grey market premium (GMP) for Zinka Logistics has fallen to zero, indicating a potentially weak listing for investors. Previously, the GMP was Rs 24 before the IPO opened. Shares of Zinka Logistics are set to list on the NSE and BSE on Thursday, November 21.

Zinka Logistics Solutions IPO Objective

The Flipkart-backed logistics startup, Zinka Logistics, plans to allocate Rs 200 crore from the net fresh issue proceeds for sales and marketing expenses and Rs 75 crore for product development.

Additionally, Rs 140 crore will be invested in its NBFC subsidiary, Blackbuck Finserve, to strengthen its capital base for future needs. The remaining IPO funds will be used for general corporate purposes. Proceeds from the offer-for-sale component will go to the selling shareholders, including promoters and investors.

Brokerages on Zinka Logistics Solutions

Anand Rathi has rated the IPO as “SUBSCRIBE – Long term,” viewing it as a compelling opportunity for long-term investors at a fair price. Similarly, Bajaj Broking suggests that, despite aggressive pricing, the IPO may be a moderate long-term investment choice for those seeking exposure to a leading platform in the logistics sector.

Zinka Logistics Solutions Financial Performance

Zinka Logistics narrowed its net loss from continuing operations to Rs 167 crore in fiscal 2024, down from Rs 236.8 crore the previous year. The EBITDA loss also reduced to Rs 158.4 crore from Rs 232.5 crore. Revenue surged 69% year-on-year to Rs 297 crore, driven by growth in average monthly transacting truck operators, which boosted commission, subscription, and service fees.

For the quarter ended June 2024, Zinka recorded a profit of Rs 32.4 crore, reversing a Rs 33.3 crore loss from the same period last year, aided by exceptional gains of Rs 25.6 crore. Revenue grew 55% to Rs 92.2 crore, with EBITDA reaching Rs 8.4 crore, up from an EBITDA loss of Rs 30.6 crore in the prior year’s quarter.

Zinka Logistics Solutions Shareholding Pattern

Promoters Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam hold a 34.32% stake in BlackBuck, with the remaining 65.68% owned by public shareholders. Key institutional investors include Accel, Flipkart Logistics (Quickroutes International), International Finance Corporation, Sands Capital, GSAM Holdings, and Peak XV Partners.

Rajesh Yabaji serves as Chairman, Managing Director, and CEO of BlackBuck, while Chanakya Hridaya is the Executive Director and COO. Ramasubramanian Balasubramaniam is the Executive Director and Head of New Initiatives.

About Zinka Logistics Solutions

Zinka claims to be India’s largest digital platform for truck operators, with 9,63,345 users in FY24, representing 27.52% of the country’s truck operators, according to a Redseer report. Its BlackBuck app supports truck operators in managing toll and fuel payments, tracking drivers and fleets, finding loads, and accessing financing for used vehicle purchases.

The company partners with FASTag banks and oil marketing companies, generating revenue through commissions on transaction values. Notably, there are no directly comparable listed companies in India or abroad operating in Zinka’s specific business model.

Zinka Logistics Solution Book Leading Managers

Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Securities are serving as the book running lead managers for the Zinka Logistics Solutions IPO. Kfin Technologies has been appointed as the registrar for the IPO.