Zinka Logistics IPO opens on November 13: Check price band, issue size, business model & more

Zinka Logistics Solution Limited IPO (Blackbuck IPO) will open for subscription next week on Wednesday, November 13.

The logistics Unicorn, which offers a range of services to truck operators through its Blackbuck app, aims to raise ₹1,114.72 crore via its initial public offer. The mainboard issue will remain open for subscription from November 13 to November 18.

Zinka Logistics IPO price band and lot size

The book-building offer comprises a fresh issuance of 2.01 crore, shares amounting to ₹550 crore, and an offer-for-sale (OFS) component of 2.07 crore shares, worth ₹564.72 crore.

Blackbuck IPO price band has been set at ₹259 to ₹273 per share. Retail investors can apply for the issue by placing bids for a minimum lot size of 54 shares, aggregating to an investment of ₹14,742 at the upper end of the price band.

Zinka Logistics has reserved 75% of the net offer size for the Qualified Institutional Buyers category. The company has also reserved as much as 10% of the net issue for retail individual investors and 15% for the Non Institutional Investor (NII) category.

Zinka Logistics IPO: Allotment and listing date

Blackbuck IPO share allotment status is likely to be finalised on Tuesday, November 19. Subsequent to the allotment of shares, refunds will be initiated for unsuccessful bidders on Wednesday, November 20 and successful bidders will receive shares of Zinka Logistics Solution in their Demat accounts on the same day. Shares of Zinka Logistics Solution will be listed on the NSE and BSE. The tentative listing date for Zinka Logistics Solution shares is Thursday, November 21.

Zinka Logistics IPO: Financials and competitors

Zinka Logistics Solution’s revenue for the June quarter of FY25 stood at ₹98.33 crore and the company's profit-after-tax stood at ₹32.38 crore.

Zinka Logistics Solution’ revenue increased more than 62% to ₹316.51 crore in FY24 against ₹195.09 crore in FY23. The company posted a net loss of ₹193.95 crore in FY24 compared to a loss of ₹290.5 crore in FY23.

The company said in its RHP that it does not have direct identifiable competitors offering the entire spectrum of services provided by the company. However, the company competes with new-age players like Wheelseye, Vahak and FleetX Loconav in its digital freight platform business. The company also competes with financial services providers such as Shriram Transport Finance, ICICI Bank, IDFC First Bank, Axis Bank, HDFC Bank, State Bank of India and Kotak Mahindra Bank.

Zinka Logistics Solution business model

Zinka Logistics Solution is one of India’s largest digital platform for truck operators. The company’s digital platform had 9,63,345 users in FY 2024. The company’s digital platform provides truck operators services such as management of payments for tolling and fueling, monitoring drivers and fleets using telematics, finding loads on the app’s marketplace and getting access to financing for the purchase of used commercial vehicles.

Zinka Logistics Solution: Key strengths

• Zinka Logistics Solutions claims in its RHP that it is India’s largest digital platform for truck operators in terms of number of users as of March 31, 2024 according to the Redseer Report in Fiscal 2024.
• The logistics solutions provider benefits from having a strong network of platforms resulting in robust customer retention rates and higher monetisation according to the RHP.
• The company has a repeatable playbook of creating and launching new offerings as it is focused on addressing challenges faced by truck operators in India by creating innovative solutions.
• It has a high growth business with operating leverage and strong unit economics due to its asset-light business model which is based on offering services to truck operators, and generates revenue through platform fees, subscription fees and commissions.

Zinka Logistics Solution: Risks and threats

• The company and its subsidiary TZF Logistics Solutions Private Limited have incurred losses and witnessed negative operating cash flows in the past. Additionally its subsidiary, Blackbuck Finserve Private Limited, has witnessed negative operating cash flows in the past.
• The company mentioned in its RHP that it depends on certain key suppliers to procure a significant portion of its vehicle tracking solutions. Any loss of the relationship could adversely affect the company’s business.
• Its vehicle financing business exposes it to various risks such as high-risk borrowers and collateral recovery which could adversely affect its business.
• Zinka Logistics added that its operations may be affected by fluctuations in the road transportation industry and fuel prices.

About Zinka Logistics Solution

Zinka Logistics Solution was founded in April 2015. The company provides a digital platform for truck operators. The company’s Blackbuck app offers a wide range of services like payments, telematics, a marketplace and vehicle financing for truck operators.