Last Updated:
Unlisted shares of Zinka Logistics Solutions Ltd are trading at Rs 273 apiece in the grey market, which is the same as its IPO issue price of Rs 273. The zero GMP indicates a flat or even negative listing for the IPO.
As per the draft IPO papers filed on Tuesday, Belrise Industries intends to utilise proceeds worth Rs 1,618 crore for payment of debt.
Zinka Logistics Solutions IPO Listing Date: Zinka Logistics Solutions Ltd (or BlackBuck Ltd), which was scheduled to be listed on stock exchanges BSE and NSE on Thursday, has postponed its listing to Friday. As per norms, a company is mandated to list its shares within three days of the IPO closing date (T+3). The IPO listing generally takes place at 10:00 am.
The IPO’s GMP continues to remain zero for the past 10 days. According to market observers, unlisted shares of Zinka Logistics Solutions Ltd are trading at Rs 273 apiece in the grey market, which is the same as its IPO issue price of Rs 273.
The zero GMP indicates a flat or even negative listing for the IPO.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
The initial public offering of digital platform for truck operators Zinka Logistics Solutions Ltd was opened for subscription between November 13 and November 18. So, as per rules, the IPO need listing by November 22.
The Rs 1,100-crore IPO received a 1.87 times subscription garnering bids for 4,19,43,258 shares as against the 2,24,70,786 shares on offer.
According to the red herring prospectus, the Zinka Logistics Solutions IPO listing was initially scheduled to take place on November 21, 2024. However, the listing has been postponed by a day due to the closure of stock exchanges on November 20, 2024, on account of the Maharashtra Assembly elections.
Zinka Logistics Solutions IPO: What Should Investors Do Post Listing?
Shivani Nyati, head of wealth at Swastika Investmart Ltd, said, “Zinka Logistics, a leading digital platform for truck operators, is gearing up for its stock market debut. While the IPO has received a decent subscription of 1.87 times, the current grey market premium (GMP) of 0% indicates a potential for a flat or even negative listing.”
The company’s strong network effects and position as a leading platform in the logistics industry are positive factors. However, financial challenges, including ongoing losses and negative cash flow, raise concerns. Additionally, the company’s legal challenges and recent employee layoffs indicate operational difficulties. The low promoter holding further adds to investor skepticism, she added.
“Given the company’s financial performance, operational challenges, and the lack of a clear valuation metric, investors are advised to exercise caution,” Nyati said.
Zinka Logistics Solutions IPO: More Details
Zinka Logistics Solutions on Tuesday mobilised over Rs 501 crore from anchor investors, a day before its initial share-sale opening for public subscription.
The IPO is a combination of a fresh issue of shares worth Rs 550 crore and an offer of sale (OFS) of up to 2.06 crore shares. The OFS by promoters and investor selling shareholders is valued at Rs 565 crore at the upper end of the price band.
A discount of Rs 25 per equity share is being offered to eligible employees bidding in the employee reservation portion.
Proceeds from the fresh issuance to the extent of Rs 200 crore will be used for sales and marketing initiatives; Rs 140 crore for investment in Blackbuck Finserve for financing the supporting the capital base to meet future capital requirements; Rs 75 crore for funding of expenditure in relation to product development, 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, providing solutions for payments, telematics, load management and vehicle financing.
The Bengaluru-based firm processed a Gross Transaction Value (GTV) of Rs 5,356.20 crore and Rs 17,396.19 crore in payments in the three months ended June 30, 2024, and fiscal 2024, respectively. The payments platform addresses significant expenses for truck operators, such as tolls and fuel.
The company partners with FASTag banks and multiple oil marketing companies (OMCs) to offer efficient and secure tolling and fuelling solutions, 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 92.17 crore with a profit after tax of Rs 28.67 crore.
Axis Capital, Morgan Stanley India Company, JM Financial and IIFL Capital Services are the book-running lead managers to the issue.