Zinka Logistics Solutions IPO Listing Date: Zinka Logistics Solutions Ltd (or Blackbuck Ltd), which was scheduled to list on stock exchanges BSE and NSE on Thursday, has postponed its listing till Friday. As per norms, a company is mandated to list its shares within three days of the closing date (T+3) of the IPO. The IPO listing usually takes place at 10:00 am.
IPO’s GMP has been zero for last 10 days. According to market watchers, unlisted shares of Zinka Logistics Solutions Ltd traded in the gray market at Rs. 273 which is trading at Rs. The IPO issue price of 273 is the same.
A zero GMP indicates a flat or even negative listing for the IPO.
GMP is dependent on market sentiments and is subject to change. The ‘grey market premium’ represents the willingness of investors to pay more than the issue price.
The initial public offering of the digital platform for truck operators Zinka Logistics Solutions Limited was opened for subscription between November 13 and November 18. Therefore, as per the rules, the IPO needs to be listed by November 22.
Rs. 1,100 crore IPO fetched 1.87 times subscription bid for 4,19,43,258 shares as against 2,24,70,786 shares on offer.
Zinka Logistics Solutions IPO: What Should Investors Do After Listing?
Shivani Nyati, Head of Wealth, Swastik Investsmart Limited said, “Zinka Logistics, a leading digital platform for truck operators is gearing up for its stock market debut. While the IPO has received 1.87 times eligible subscription, the current gray market premium (GMP) of 0% indicates a flat or even negative listing potential.”
The company’s strong network effects and position as a leading platform in the logistics industry are positive factors. However, financial challenges including ongoing deficits and negative cash flow add to the concern. Additionally, the company’s legal challenges and recent layoffs indicate operational difficulties. Low promoter holdings add to investors’ skepticism, she added.
“Given the company’s financial performance, operational challenges and lack of a clear valuation metric, investors are advised to exercise caution,” Nyati said.
Zinka Logistics Solutions IPO: More Details
Zinka Logistics Solutions raised Rs 10,000 from anchor investors a day ahead of the launch of its initial share-sale for public subscription on Tuesday. 501 crore was collected.
The IPO raised Rs. There is a combination of a fresh issue of 550 crore shares and an offer of sale (OFS) of up to 2.06 crore shares. OFS sold to shareholders by promoters and investors are valued at the upper end of the price band at Rs. 565 crores.
Eligible employees bidding in the employee reservation portion will receive Rs. A discount of 25 is being offered.
Proceeds from the new issue to the extent of Rs 200 crore will be used for sales and marketing initiatives; Investment in Blackbuck Finserv Rs. 140 crore, to finance capital base to meet future capital requirements; To fund expenditure in connection with product development Rs. 75 crore, and a portion will be used for general corporate purposes.
Zinka Logistics is dedicated to transforming the trucking industry in India by digitally empowering truck operators to manage their businesses and increase their earnings. The company’s Blackbuck app serves as a comprehensive platform, offering solutions for payments, telematics, load management and vehicle financing.
The Bengaluru-based firm paid Rs. 5,356.20 crore and Rs. 17,396.19 crore gross transaction value (GTV) was processed. The payment platform addresses significant costs for truck operators such as tolls and fuel.
The company offers efficient and secure tolling and fueling solutions with FASTag banks and multiple Oil Marketing Companies (OMCs), generating revenue through commission margins based on transaction values.
For the three months ended June 2024, the company’s revenue from continuing operations stood at Rs. 28.67 crore with profit after tax of Rs. 92.17 crores.
Axis Capital, Morgan Stanley India Company, JM Financial and IIFL Capital Services are the book-running lead managers to the issue.