Zinka Logistics IPO will open on November 13, 2024, and close on November 18, 2024. Zinka Logistics Solution Limited was incorporated in 2015 and is India’s largest digital trucking platform. So, let’s uncover all the Zinka Logistics IPO details, price band, financials, and peer analysis.
Zinka Logistics IPO Date 2024
The important dates related to the Zinka Logistics IPO (Blackbuck IPO) are:
- Bidding Opening Date: November 13, 2024
- Bidding Closing Date: November 18, 2024
- Allotment Date: November 19, 2024
- Initiation of Refunds (in case of less or no allotment): November 20, 2024
- Shares Credited to Your Demat Account: November 20, 2024
- IPO Listing Date: November 21, 2024
- Listing on Exchange: NSE and BSE
Zinka Logistics IPO Details
Blackbuck IPO’s total issue size is more than ₹1,100 crores including both the fresh issue and offer for sale (OFS) component.
Here are the key details of Zinka Logistics Solution Limited IPO:
- Zinka Logistics IPO Price Band: ₹259 to ₹273 per share
- Face Value: ₹1 per share
- Lot Size: 54 Shares
- Total Issue Size and Amount: 4,08,32,320 shares (amounting to ₹1,114.72 crores)
- Fresh Issue Size and Amount: 2,01,46,520 shares (amounting to ₹550 crores)
- OFS Size and Amount: 2,06,85,800 shares of ₹1 each (amounting to ₹564.72 crores)
Zinka Logistics IPO Proceeds Usage
Zinka Logistics Solution Limited is planning to use the net proceeds for the following purposes:
- ₹200 crores for covering sales and marketing costs.
- ₹140 crores to be invested in Blackbuck Finserve Private Limited. This will help in increasing the capital base and fulfill the future capital needs of the subsidiary.
- ₹75 crores for covering the expenditure related to the product development.
- Remaining for general corporate purposes.
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Zinka Logistics IPO Reservations
Zinka Logistics IPO (Blackbuck IPO) reservations to different investors are:
- For QIBs: Not less than 75% of the net offer
- For NIIs: Not more than 15% of the net offer
- For Retail Investors: Not more than 10% of the net offer
Zinka Logistics IPO Lot Size
Blackbuck IPO lot size is 54 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:
| Applicant Type | Lot Size | Shares | Amount (in ₹) |
|---|---|---|---|
| Retail (Min) | 1 | 54 | ₹14,742 |
| Retail (Max) | 13 | 702 | ₹1,91,646 |
| S-HNI (Min) | 14 | 756 | ₹2,06,388 |
| S-HNI (Max) | 67 | 3,618 | ₹9,87,714 |
| B-HNI (Min) | 68 | 3,672 | ₹10,02,456 |
Zinka Logistics Solution Limited IPO: Promoter Holding
The promoters of Zinka Logistics Solution Limited are:
- Rajesh Kumar Naidu Yabaji
- Chanakya Hridaya
- Ramasubramanian Balasubramaniam
Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam are the promoter-selling shareholders in the Blackbuck IPO. The investor-selling shareholders are Quickroutes International Private Limited, Accel India IV (Mauritius) Limited, International Finance Corporation, etc.
Zinka Logistics Solution Limited: Company Overview
Zinka Logistics Solution Limited is India’s largest digital platform with 9,63,345 truck operators transacting on the platform in FY24. The company provides services to 27.52% of total truck operators in India and also facilitated 32.92% of the total commercial vehicle tolling payments in India in FY24.
Blackbuck platform helps truck operators digitally manage their payments for fuelling and tolling. The customers can also monitor drivers and fleets using telematics, track loads marketplace, and take financing of used vehicles.
In the payment offerings, Blackbuck provides tolling solutions (FASTags) and has partnerships with FASTag Partner Banks. The company is the largest distributor and technology provider of FASTags for truck operators (in terms of GTV) in FY24.
The company facilitated over 41.33 crores transactions for 9,63,345 annual transacting truck operators in FY24. It provides services and products across 628 districts, covering 80% of India’s districts as of June 30, 2024.
Zinka Logistics IPO: Financial Metrics
Zinka Logistics Solution Limited’s key financials for different periods are as follows:
| Period Ended | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | YoY Change |
|---|---|---|---|---|
| Revenue | 98.33 | 316.51 | 195.09 | 62.24% |
| Profit After Tax | 32.38 | -193.95 | -290.5 | -33.24% |
| Assets | 629.41 | 654.32 | 654.25 | 0.01% |
| Total Borrowing | 161.01 | 173.74 | 165.84 | 4.76% |
| Adjusted EBITDA | 18.26 | 13.34 | -154.47 | 108.63% |
| Gross transaction value of payments | 5,356.20 | 17,396.19 | 12,194.59 | 42.66% |
| Annual transacting truck operator (in units) | – | 9,63,345 | 7,61,871 | 2,01,474 |
*(in ₹ crores)
- In FY24, Blackbuck revenue increased by 62.24% while losses were reduced by 33.24% on a year-on-year basis.
- The assets increased by 0.01% but borrowings also increased by 4.76% from FY23 to FY24.
- The gross transaction value (GTV) of payments increased by 42.66% YoY in FY24.
- Blackbuck’s annual transaction truck operators increased by 2,01,474 from FY23 to FY24.
Peer Analysis of Zinka Logistics Solution Limited
The comparison of Zinka Logistics Solution Limited’s performance with its peers in the same industry is as follows:
| Company Name | EPS (Diluted) | NAV per Share | Return on Net Worth | YoY Growth in Revenue (Continuing Operations) |
|---|---|---|---|---|
| Zinka Logistics Solution Limited | -₹10.52 | ₹16.89 | -53.64% | 69.01% |
| C.E. Info Systems Ltd | ₹24.58 | ₹12.09 | 0.20% | 34.80% |
| FLEETCOR Technologies, Inc | ₹1,100.48 | ₹36,78,737.81 | 0.30% | 20.60% |
| Full Truck Alliance Co. Ltd | ₹0.83 | ₹19.76 | 0.06% | 33.86% |
*(Last FY ending of respective companies)
- Zinka Logistics EPS is negative in FY24 which is a sign of worry while RoNW is also negative.
- The year-on-year growth in revenue from continuing operations of Zinka Logistics Solution Limited is the highest in the industry in FY24.
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Risk Factors in Zinka Logistics Solution Limited IPO
The risk factors that the Zinka Logistics Solution Limited is exposed to are as follows:
- In October 2024, a few investors transferred 2,66,644 equity shares to promoter Rajesh Kumar Naidu Yabaji as a gift. These transfers were not mentioned in the DRHP and will result in a gain of the upper price band to Rajesh Kumar Naidu Yabaji.
- Zinka Logistics and TZF Logistics Solutions Private Limited and BlackBuck Finserve Private Limited (subsidiaries) have incurred losses and negative operating cash flows in the last few years.
- Heavily dependent on business partners for payments and vehicle financing offerings and any loss of such partners can affect the financial performance.
- Any loss of relationship with certain key suppliers that provide vehicle tracking solutions can impact the business.
- Failure to retain the existing truck operators or attract new customers on the platforms can impact the cash flows.
- Commission income and subscription fees hold a significant portion of the revenue and any fall in such incomes can impact the business.
Zinka Logistics Solution Limited IPO Contact Information
For inquiries related to the Zinka Logistics IPO details, you can contact at the following places:
Registered Office Address: Vaswani Presidio, no. 84/2, II Floor, Panathur Main Road, Kadubeesanahalli, Off Outer Ring Road, Bengaluru 560 103, Karnataka, India
Email: cs@blackbuck.com
Company Website: https://www.blackbuck.com/
Zinka Logistics IPO Registrar Details:
Registrar Name: KFin Technologies Limited
Phone: 91 40 6716 2222
Email: zinka.ipo@kfintech.com
For all the insights on Zinka Logistics IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening demat account now.
FAQs
1. What is the net worth of BlackBuck?
The net worth of BlackBuck is ₹344.98 crores as of June 30, 2024, and it generated a return on net worth (RoNW) of 9.39%.
BlackBuck is the largest trucking platform in India with a market share of 32.92% in truck tolling (in terms of Gross transaction value payments) in FY24.
3. Who is the CEO of BlackBuck?
Rajesh Kumar Naidu Yabaji is the Chairman, Managing Director, and CEO of BlackBuck.
Reference
https://bb-website-public-assets.s3.ap-south-1.amazonaws.com/legal-assets/pdf/RHP.pdf
Author: All Content is verified by SMC Global Securities.
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