Zinka Logistics Solutions Limited, known for its BlackBuck platform, launched its IPO from November 13 to November 18, 2024. The IPO comprises a Fresh Issue of ₹550 crores and an Offer for Sale (OFS) of ₹564.72 crores, totaling ₹1,114.72 crores. The price band is set at ₹259–₹273 per share, with a market capitalization of ₹4,817.81 crores at the upper price band.

IPO Details

• Issue Type: Fixed Price IPO
• Subscription Dates: November 13–18, 2024
• Lot Size: 54 shares
• Retail Minimum Investment: ₹14,742 (1 lot)
• HNI Minimum Investment: ₹2,06,388 (14 lots)
• Listing: Shares will list on BSE and NSE on November 21, 2024.

Company Overview

Zinka Logistics operates BlackBuck, a leading platform offering:

1. Payments and Telematics: Tools for toll and fueling payments.
2. Loads Marketplace: Streamlined matching of loads with truck operators.
3. Vehicle Financing: Supporting operational efficiency for truckers.

Promoters include Rajesh Kumar Naidu Yabaji, Chanakya Hridya, and Ramasubramanian Balasubramaniam.

Objectives of the IPO

The funds raised through the IPO will be utilized for:

1. Sales and Marketing: ₹200 crores for customer acquisition and growth.
2. NBFC Capital Augmentation: ₹140 crores for BlackBuck Finserve Private Limited.
3. Product Development: ₹75 crores for technology upgrades.
4. General Corporate Purposes.

Financial Overview

The company has reported consistent losses, with a negative EPS of ₹-9.06 pre-issue.

Subscription Status

• As of 02:40 PM on November 18, 2024, the IPO was subscribed 1.23 times, with significant demand from institutional investors.
• Anchor Investors: Zinka raised ₹501.33 crores from anchor investors, allocating 1.83 crore shares at ₹273 per share.

Grey Market Premium (GMP)

The GMP stands at ₹0, reflecting muted enthusiasm among traders and investors. Historically, GMP trends are indicative but not definitive of listing gains or losses.

Allotment Details

• Allotment Date: November 19, 2024
• Investors can check their allotment status via:
  1. Registrar’s website (KFin Technologies).
  2. BSE website using application details.

Brokerage Opinions

1. Valuation Concerns:

   • Pre-issue P/E ratio of -30.13x versus industry average of 305.96x suggests the IPO is overvalued relative to peers.
   • Continuous losses and negative ROE raise doubts about long-term growth potential.

2. Recommendation:

   • Given the company’s financials and lack of profitability, experts recommend avoiding this IPO for listing gains or long-term investment.

Conclusion

While Zinka Logistics Solutions aims to leverage its BlackBuck platform for logistics innovation, its financial underperformance and overvaluation make this IPO a high-risk investment. Investors are advised to assess their risk appetite and consult financial advisors before proceeding.

The Upcoming IPOs in this week and coming weeks are NTPC Green, Lomosaic India, C2C Advanced System, Rajesh Power Services, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO are Zinka Logistics Solution (Black Buck), and Onyx Biotec.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.