With a price band of Rs. 259 to Rs. 273 per share, the Zinka Logistics Solutions Limited IPO is set to open for subscription on November 13, 2024. The Zinka Logistics Solution Limited IPO, also known as BlackBuck IPO, will be listed on the BSE and NSE, with a tentative listing date fixed as Thursday, November 21, 2024.
This IPO combines a fresh issue of Rs. 2.01 Crore shares worth Rs. 550 Crore and an offer for sale of Rs. 2.07 Crore shares, aggregating to Rs. 564.72 Crore. The company aims to raise around Rs. 1,115 Crore through the initial share sale.
Key Details of the Zinka Logistics Solution Limited IPO (BlackBuck IPO)
| Details | Description |
| IPO Opening Date | 13th November, 2024 |
| IPO Closing Date | 18th November, 2024 |
| Listing Date | 21st November, 2024 |
| Price Band | Rs. 259 to Rs. 273 per share |
| Lot Size | 54 Shares |
| Fresh Issue | Rs. 550 Crore |
| Offer For Sale | Rs. 564.72 Crore |
| Total Issue Size | Rs 1,114.72 Crore |
Company Profile
Zinka Logistics was founded in April 2015, and it operates through the Blackbuck app. It claims to be the country’s largest digital platform for truck operators, with an estimated usage rate of 27.52% in the financial year 2024.
The BlackBuck app helps truck operators manage their daily tolling and fueling payments, monitor drivers and fleets using telematics, and more. Here are a few key milestones that the company achieved by 31 March 2024.
| Milestones | Description |
| Payments Processed | Rs. 173,961.93 Million |
| Active Telematics Devices | 356,050 |
| Total Loans Amount | Rs 1,967.88 Million |
Investor Categories and Zinka Logistics Solutions Shares Offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75.00% of the offer |
| Retail Shares Offered | Not more than 10.00% of the Offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
Risks and Concerns Associated With Zinka Logistics
- Zinka Logistics has witnessed negative operating cash flows in the past.
- The company heavily depends on its business partners, and the loss of any such partner can affect the business in a bad way.
- The company has identified that the road transportation sector and fuel costs can impact its operations.
- Around 95% of the revenue generated in FY24 was from payments and telematics offerings.
Should You Invest?
Investing in the Zinka Logistics IPO comes down to your personal choice. The recent move of the company towards profit is indeed an encouraging sign. However, you should take into account all the operational risks associated with the company.
The success of the company will solely depend on its ability to grow while building a sustainable business model in this developing sector.