Zinka Logistics Solution, which provides truck operators with an operating platform called BlackBuck, is all set to hit the bourses on November 21. The IPO opened on November 13 and raised Rs 1,114.72 crore. It was closed on November 18. It was subscribed 1.87 times. The issue combined the sale of fresh shares with an offer for sale.
The allotment of shares was finalised on November 19. The IPO price band ranged between Rs 259 t- 273 per equity share. Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Securities were the book-running lead managers of the IPO
Zinka Logistics IPO Listing 2024 Live Updates: Listing, share price, GMP, subscription status
Zinka Logistics IPO Listing Share Price Live Updates: Key strength
Zinka has strong network effects of a platform built over 9 years of operations resulting in robust customer retention rates and higher monetization. They have been able to build a nationwide truck operator base through targeted digital and telemarketing campaigns and effective nationwide on-ground teams.
Zinka Logistics IPO Listing Share Price Live Updates: About the company
Truck operators avail used commercial vehicle financing through its platform. As of June 30, 2024, it had facilitated disbursements of 5,109 loans amounting to Rs. 252.76 crore. Its offerings solve critical problems for customers and form an integral part of their daily lives.
Zinka Logistics IPO Listing Share Price Live Updates: Key risk of IPO
Zinka Logistics is dependent on certain key suppliers to procure a significant portion of their vehicle tracking solutions. It does not enter into long-term agreements with these suppliers and any denial of supplies or loss of the relationship with these suppliers or any supply chain disruption could adversely affect their business, results of operations and financial condition.
Zinka Logistics IPO Listing Share Price Live Updates: Minimum investment required
A retail buyer had to apply for a minimum of 54 shares in a lot, which amounts to Rs 14,742. There were different lot sizes for small and big NIIs, ranging from Rs 2,06,388 to Rs 10,02,456.
Zinka Logistics IPO Listing Share Price Live Updates: Anand Rathi's take on IPO
"At the upper price band company is valuing at market cap/sales of 16.2x on FY24 basis with a market cap of Rs 4,817.8 crore post issue of equity shares. On the valuation front, we believe that the company is fairly priced. Therefore, we recommend a “SUBSCRIBE - Long term” rating to the IPO," said Anand Rathi Research in an IPO note.
Zinka Logistics IPO Listing Share Price Live Updates: Zinka Logistics Solutions Shareholding Pattern
Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam collectively hold a 34.32% stake in BlackBuck, with the remaining 65.68% owned by public shareholders. Key institutional investors in the company include Accel, Flipkart Logistics (Quickroutes International), International Finance Corporation, Sands Capital, GSAM Holdings, and Peak XV Partners.
Rajesh Yabaji serves as the Chairman, Managing Director, and CEO of BlackBuck, while Chanakya Hridaya holds the position of Executive Director and COO.
Zinka Logistics IPO Listing Share Price Live Updates: Zinka Logistics Solutions Financial Performance
Zinka Logistics reduced its net loss from continuing operations to Rs 167 crore in fiscal year 2024, compared to a loss of Rs 236.8 crore in the previous year. The company's EBITDA loss also decreased to Rs 158.4 crore, down from Rs 232.5 crore in FY23. Revenue for the year saw a 69% year-on-year growth, reaching Rs 297 crore, driven by an increase in average monthly transacting truck operators, which boosted commission, subscription, and service fees.
Strong Performance in Q1 FY24
For the quarter ending June 2024, Zinka Logistics turned around its performance, recording a profit of Rs 32.4 crore, reversing a Rs 33.3 crore loss from the same period in the previous year. The company benefited from exceptional gains of Rs 25.6 crore. Revenue for the quarter grew 55% year-on-year, reaching Rs 92.2 crore, while EBITDA improved significantly, reaching Rs 8.4 crore, compared to an EBITDA loss of Rs 30.6 crore in the corresponding quarter of the previous year.
Zinka Logistics IPO Listing Share Price Live Updates: About Zinka Logistics
Zinka Logistics Solution offers a digital platform, the BlackBuck app, for truck operators. In FY24, 963,345 truck operators in the country conducted their business through the platform, representing 27.52% of all Indian truck operators. Zinka Logistics Solution's BlackBuck app is a platform that offers payments, telematics, a freight marketplace, and vehicle financing services to help truck operators achieve their goals efficiently.
Zinka Logistics IPO Listing Share Price Live Updates: Bajaj Broking on Zinka Logistics
"If we attribute annualized FY25 earnings to post-IPO fully diluted equity base, then the asking price is at a P/E of 37.19 and based on FY24 earnings, the P/E stands negative. Thus the issue appears aggressively priced. PAT margins and RoCE margins data are missing from the offer documents," said Bajaj Broking in an IPO note.
Zinka Logistics IPO Listing Share Price Live Updates: Subscription status
The IPO was subscribed to a total of 1.87 times. The employee category saw an overwhelming response as it got booked almost 10 times. The retail investors booked the issue 1.7 times while the NIIs subscribed to it 0.24 times. The QIB section was booked 2.72 times.
"In terms of the financial aspect, from being a loss-making entity, the company turned profitable in Q1FY25. At the upper price band, the company is valuing at Mcap/Sales of 16.2x on an FY24 basis with a market cap of Rs 4,817.8 crore post-issue of equity shares. On the valuation front, we believe that the company is fairly priced. Therefore, we recommend a “Subscribe- Long term” rating to the IPO," said Anand Rathi Research in an IPO note.
Zinka Logistics IPO Listing Share Price Live Updates: GMP update
Zinka Logistics IPO Live Updates: Objectives of IPO
Zinka Logistics Solution proposes to utilise the raised proceeds towards sales and marketing costs and investment in Blackbuck Finserve for financing the augmentation of its capital base to meet its future capital requirements. Also, the funds will be used for the funding of expenditures for product development and other general corporate purposes.