Zinka Logistics Solutions, operating under the brand BlackBuck, is a leading platform for truck operators offering digital solutions for payments, telematics, loads marketplace, and vehicle financing services. BlackBuck empowers truck operators to manage their day-to-day business operations, including tolling and fueling payments, vehicle and fuel tracking, and load matching via its mobile app.

The Zinka Logistics Solutions IPO is a Fixed Price Issue amounting to ₹1,114.72 Crores, consisting of a fresh issue of ₹550.00 Crores and an Offer for Sale (OFS) of ₹564.72 Crores. The subscription period for the IPO opens on November 13, 2024, and closes on November 18, 2024. The allotment date is expected to be finalized on November 19, 2024, with the shares listing on the BSE & NSE on November 21, 2024.

Share Price and Investment Details:

The price band for the Zinka Logistics Solutions IPO is set between ₹259 and ₹273 per share. The market capitalization at the upper price band will be ₹4,817.81 Crores. The lot size is 54 shares, and retail investors are required to invest a minimum of ₹14,742. HNIs need to invest in a minimum of 14 lots (756 shares), totaling ₹2,06,388.

The book-running lead managers for the IPO are Axis Capital Limited, Morgan Stanley India Company Private Limited, JM Financial Limited, and IIFL Capital Services Limited, while Kfin Technologies Limited is the registrar.

IPO Subscription and Allotment Status:

As of November 13, 2024, at 5:00 PM, the Zinka Logistics Solutions IPO was subscribed 0.24 times on the first day of the subscription period. The Grey Market Premium (GMP) is reported as ₹0, indicating that no real trading is being done at a premium.

Zinka Logistics has raised ₹501.33 Crores from Anchor Investors at ₹273 per share, allocating 1,83,63,915 equity shares to them.

Objectives of the IPO:

The proceeds from the Zinka Logistics IPO will be utilized for the following purposes:

1. ₹2,000.00 Million for sales and marketing expenses.
2. ₹1,400.00 Million for investing in BlackBuck Finserve Private Limited, the company’s NBFC subsidiary, to enhance its capital base for future requirements.
3. ₹750.00 Million for funding product development.
4. General corporate purposes.

Financial Performance:

For the fiscal years 2024, 2023, and 2022, Zinka Logistics reported:

• Revenue: ₹3,165.14 Lakhs (FY24), ₹1,950.92 Lakhs (FY23), ₹1,561.28 Lakhs (FY22)
• EBITDA: ₹-1,387.80 Lakhs (FY24), ₹-2,130.78 Lakhs (FY23), ₹-1,977.35 Lakhs (FY22)
• Profit after Tax (PAT): ₹-1,669.86 Lakhs (FY24), ₹-2,368.49 Lakhs (FY23), ₹-2,303.49 Lakhs (FY22)

The pre-issue EPS stands at ₹-9.06, with a P/E ratio of -30.13x. Given the negative financials and the industry P/E ratio of 305.96x, it is clear that the IPO is priced at a premium despite the losses. The company’s Return on Capital Employed (ROCE) for FY24 is -33.84%, and Return on Equity (RoE) is -53.64%, indicating poor financial performance.

IPO Review:

Based on the financial performance, including negative revenues, EBITDA, and PAT, the Zinka Logistics IPO is unlikely to provide significant listing gains. Despite the company’s digital platform for truck operators, its poor financial health raises concerns about its future performance. Therefore, we recommend avoiding the Zinka Logistics Solutions IPO for both listing gains and long-term investment.

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.