Zinka Logistics Solutions IPO Listing: Shares on BSE at Rs. 279.05, which was Rs. 273 is a 2.21 percent premium to the IPO issue price.
Zinka Logistics Solutions IPO Listing: Zinka Logistics Solutions Ltd (or Blackbuck Ltd) saw a positive listing on major stock indices BSE and NSE on Friday. Shares on NSE at Rs. 280.90, which was Rs. 273 is a 2.89 percent premium over the IPO issue price. In early volatile trade, shares were trading 3.83 per cent higher by 10:04 on the BSE. am
On the BSE, the share traded at Rs. 279.05, a gain of 2.21 percent over the issue price.
The IPO was originally listed on Thursday but was later postponed to 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 listing gain comes after the GMP indicating flat listing or negative listing for IPOs.
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. Rs. 1,100 crore IPO received 1.87 times subscription bid for 4,19,43,258 shares, while 2, 24,70,786 shares on offer.
Zinka Logistics Solutions IPO: What Should Investors Do?
Shivani Nyati, Head of Wealth, Swastik Investsmart Limited said, “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 holding increases investor skepticism.”
Investors are advised to exercise caution given the company’s financial performance, operational challenges and lack of a clear valuation metric, Nyati added.
Zinka Logistics Solutions IPO: More Details
A day before the launch of its initial share-sale for public subscription, Zinka Logistics Solutions raised Rs. 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.
Employees eligible to bid in the employee reservation portion will receive Rs. A discount of 25 was 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.