BlackBuck IPO Day 1: Mainboard issue subscribed 24%; check offer size, price band and other key details

Zinka Logistics Solution Limited IPO opened to a lukewarm response from the investors across categories on Wednesday, November 13. The initial public offering of the owner of the BlackBuck app for logistics solutions was subscribed only 24% at the end of bidding at 5 pm on the first day, as per the NSE data.

Investors across categories applied for 54.08 lakh shares compared to 2.25 crore shares offered for subscription.

The mainboard issue was subscribed 50% in the retail individual investors’ category. The retail investors placed bids for over 21.15 lakh shares compared to 41.89 lakh shares reserved for the category.

The public issue was subscribed only 2% in the Non-Institutional Investors’ (NIIs) category. The NIIs applied for over 1.14 lakh shares against 62.84 lakh shares set aside for them. The Qualified Institutional Buyers (QIBs) placed bids for more than 30.94 lakh shares against 1.2 crore shares set aside for them. The issue was subscribed 26% in the QIB category.

The employees’ quota for the BlackBuck IPO has been booked 3.16 times with applications for 83,646 shares compared to 26,000 shares reserved for them.

BlackBuck IPO offer size and price band

The BlackBuck IPO, a book-building issue worth ₹1,114.72 crore, comprises a fresh issuance of 2.01 crore shares, amounting to ₹550 crore. The IPO offer size also includes an offer-for-sale (OFS) portion of 2.07 crore shares worth ₹564.72 crore.

The IPO price band has been fixed at ₹259 to ₹273 per share. The retail investors can place bids for a minimum of 54 shares, which aggregates to an investment of ₹14,742.

The Small Non-Institutional Investors (sNIIs) can apply for the issue by placing bids for a minimum of 14 lots, or 756 shares, which amounts to an investment of ₹2,06,388. Big Non- Institutional Investors (bNIIs) can bid for 68 lots, or 3,672 shares, aggregating to a minimum investment of ₹10,02,456.

BlackBuck IPO dates

BlackBuck IPO subscription window is open from Wednesday, November 13 to Monday, November 18. The share allotment status of the IPO is likely to be finalised on Tuesday, November 19.

After the finalisation of the share allotment status of the public issue, refunds will be initiated for unsuccessful bidders on Wednesday, November 20, and the successful bidders will receive shares of the company in their Demat accounts the same day as well.

Zinka Logistics Solution shares will be listed on the NSE and BSE. The IPO listing date has been tentatively fixed as November 21.

BlackBuck IPO Registrar

The book-running lead managers for BlackBuck IPO are Axis Capital Limited, Morgan Stanley India Company Pvt Ltd, JM Financial Limited and IIFL Securities Ltd. The registrar for the issue is Kfin Technologies Limited.

Zinka Logistics Solution Promoters

The promoters of the Zinka Logistics Solution are Rajesh Kumar Naidu Yabaji, Chanakya Hridaya and Ramasubramanian Balasubramaniam. Before the public issue, the promoters held 32.91% stake in the company and their shareholding will reduce to 27.84% after the issue.

Zinka Logistics Solution key financials

The company’s revenue for Q1FY25 stood at ₹98.33 crore and its net profit at ₹32.38 crore in the June quarter. Zinka Logistics Solution’s net worth stood at ₹344.98 crore at the end of the June quarter of FY25.

Its revenue for FY24 increased by over 62% to ₹316.51 crore compared to ₹195.09 crore in FY23. The company’s net loss for the fiscal ended March 31, 2024, narrowed to ₹193.95 crore compared to a net loss of ₹290.5 crore in the preceding fiscal. The net worth of the company decreased nearly 12% to ₹311.29 crore in FY24 from ₹352.66 crore in the previous financial year.

BlackBuck IPO objective

The company plans to use the money raised via the public issue to fund its sales and marketing costs. A portion of the proceeds will also be used for investing in the company’s subsidiary Blackbuck Finserve Private Limited for financing the augmentation of its capital base. The IPO proceeds will also be used for funding expenditures of product development and general corporate purposes.

About Zinka Logistics Solution

Zinka Logistics Solution was founded in April 2015. The company operates through a digital platform called ‘BlackBuck’. The BlackBuck app offers services such as payments, telematics, a freight marketplace, and vehicle financing services to truck operators.