Zinka Logistics Solutions Limited, operating under the brand BlackBuck, is a digital logistics platform specializing in payments, telematics, vehicle financing, and load marketplaces to support truck operators across India. The IPO opened on November 13, 2024, with the subscription period ending on November 18, 2024. It is a fixed-price issue worth ₹1,114.72 crores, consisting of a fresh issue of ₹550 crores and an Offer for Sale totaling ₹564.72 crores.

IPO Key Details and Market Metrics

• Price Band: The IPO is priced between ₹259-₹273 per equity share, targeting a market capitalization of ₹4,817.81 crores at the upper band.
• Lot Size and Minimum Investment: The IPO lot size is 54 shares, with a minimum investment requirement of ₹14,742 for retail investors. HNIs need to purchase a minimum of 14 lots (756 shares), totaling ₹2,06,388.
• Book Running Lead Managers: Axis Capital, Morgan Stanley India, JM Financial, and IIFL Capital are the book-running lead managers, with KFin Technologies Limited as the registrar.

Grey Market Premium (GMP) and Market Sentiment

The Grey Market Premium (GMP) is currently ₹0, which indicates minimal speculative interest in the IPO. Since GMP reflects unregulated demand, it is not a definitive measure of market reception but may imply muted listing gains.

Objectives of the IPO

The funds from the IPO’s fresh issue will be allocated as follows:

1. ₹2,000 million for sales and marketing expenses.
2. ₹1,400 million towards capital infusion into Blackbuck Finserve Private Limited, the company's NBFC subsidiary, for future capital requirements.
3. ₹750 million for product development.
4. Additional amounts for general corporate purposes.

Financial Performance and Valuation

BlackBuck has demonstrated revenue growth but remains unprofitable:

• Revenue: Increased from ₹1,950.92 lakhs in FY23 to ₹3,165.14 lakhs in FY24.
• EBITDA: Reported negative EBITDA of ₹-1,387.80 lakhs in FY24.
• Profit after Tax (PAT): Continued losses with a PAT of ₹-1,669.86 lakhs in FY24.

With a pre-issue EPS of ₹-9.06, the IPO’s valuation reflects a pre-issue P/E of -30.13x. The company’s ROCE stands at -33.84% and RoE at -53.64%, both indicating a challenging financial position. The metrics suggest a high valuation with limited immediate returns, which could impact investor sentiment.

Allotment and Listing

The IPO allotment is expected on November 19, 2024, and can be checked through the registrar’s website. The BSE and NSE listing is tentatively scheduled for November 21, 2024.

Management and Growth Outlook

Zinka Logistics Solutions, founded by Rajesh Kumar Naidu Yabaji, Chanakya Hridya, and Ramasubramanian Balasubramaniam, aims to leverage its platform to streamline logistics and expand its customer base among truck operators. The BlackBuck platform supports daily logistics operations for fueling, tolling, and freight matching, enhancing operational efficiency in the Indian trucking industry.

While BlackBuck holds a promising market niche, investors should consider the company’s ongoing financial challenges. Given the high valuation and lack of profitability, this IPO might not appeal to those seeking immediate returns. However, with potential for growth in India’s digital logistics market, BlackBuck may offer longer-term opportunities.

The Upcoming IPOs in this week and coming weeks are Rosmerta Digital, NTPC Green, Avanse Financial and Nisus Finance.

The Current active IPO are  Mangal Compusolution, 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.