Zinka Logistics Solution IPO Price: ₹259 to ₹273 per share
IPO Dates: 13 November 2024 – 18 November 2024
Company Overview
Founded in April 2015, Zinka Logistics Solutions Limited, commonly known as BlackBuck, operates India’s largest digital platform for truck operators. The platform primarily serves truck operators by enabling efficient digital management of payments, telematics, freight, and vehicle financing. As of Fiscal 2024, approximately 963,345 truck operators, accounting for 27.52% of the truck operators in India, were active on the platform.
Key Offerings
The BlackBuck app provides truck operators with an integrated solution to streamline various operational tasks:
- Payments: The platform processed a Gross Transaction Value (GTV) of ₹17,396.19 crore in Fiscal 2024, enabling operators to digitally manage toll and fuel expenses via the FASTag and fuel partners.
- Telematics: Truck operators can monitor their fleets and drivers using telematics services offered on the platform, including vehicle tracking and fuel sensors. In Fiscal 2024, BlackBuck maintained an average of 356,050 active telematics devices each month.
- Freight Marketplace: Through its marketplace, BlackBuck assists truck operators in finding and filling loads, reducing empty capacity and improving load pricing. The platform facilitated 2.12 million load postings in Fiscal 2024, enabling over 256,000 truck operators to secure loads.
- Vehicle Financing: BlackBuck also provides financing for used commercial vehicles. As of June 30, 2024, the company has disbursed loans totaling ₹252.76 crore, helping truck operators expand their fleet.
Engagement and Usage
BlackBuck’s offerings have become essential to truck operators, who are highly active on the platform. In the three months ending June 30, 2024, the average monthly transacting truck operator was active for over 16 days, spending approximately 41.54 minutes daily on the app.
Network and Reach
With the largest physical network in India among digital truck platforms, BlackBuck operates across 628 districts, covering 80% of the country’s districts and 76% of toll plazas. The network includes 9,374 digital touchpoints, supporting onboarding and servicing activities for truck operators across the nation.
Competitive Strengths
- Market Leader: BlackBuck is the largest digital platform for truck operators in India, with a significant user base built over nine years.
- Comprehensive Offerings: BlackBuck’s services address critical gaps in the market, fulfilling key needs for truck operators.
- Strong Sales Network: An extensive multi-channel sales and service network has driven widespread customer adoption.
- Scalable Business Model: The company demonstrates high growth with strong operational leverage and profitability.
- Experienced Leadership: A seasoned management team with deep industry expertise supports BlackBuck’s growth and innovation.
Bidding Starts In
Zinka Logistics Solution IPO Specifics:
| IPO Date | November 13, 2024 to November 18, 2024 |
| Listing Date | Thursday, November 21, 2024 |
| Face Value | ₹1 per share |
| Price Band | ₹259 to ₹273 per share |
| Lot Size | 54 Shares |
| Total Issue Size | 40,832,320 shares (aggregating up to ₹1,114.72 Cr) |
| Fresh Issue | 20,146,520 shares (aggregating up to ₹550.00 Cr) |
| Offer For Sale | 20,685,800 shares (aggregating up to ₹564.72 Cr) |
| Employee Discount | ₹25 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 156,330,160 |
| Share holding post issue | 176,476,680 |
Zinka Logistics Solution IPO Timetable (Important Dates)
| IPO Open Date | Wednesday, November 13, 2024 |
| IPO Close Date | Monday, November 18, 2024 |
| Basis of Allotment | Tuesday, November 19, 2024 |
| Initiation of Refunds | Wednesday, November 20, 2024 |
| Credit of Shares to Demat | Wednesday, November 20, 2024 |
| Listing Date | Thursday, November 21, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 18, 2024 |
Zinka Logistics Solution IPO Lot Size
Bidders have the opportunity to bid for a minimum of 54 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| 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 IPO Reservation
| QIB Shares Offered | Not more than 75% of the Net offer |
| Retail Shares Offered | Not less than 10% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Zinka Logistics Solution Limited IPO Financial Information
Zinka Logistics Solution Limited experienced a substantial 62.24% growth in revenue and a notable 33.24% increase in profit after tax (PAT) from the fiscal year concluding on March 31, 2024, compared to March 31, 2023.
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 June 2024 |
|---|---|---|---|---|
| Assets | 899.68 | 654.25 | 654.32 | 629.41 |
| Revenue | 156.13 | 195.09 | 316.51 | 98.33 |
| Profit After Tax | -284.56 | -290.50 | -193.95 | 32.38 |
| Net Worth | 585.08 | 352.66 | 311.29 | 344.98 |
| Reserves and Surplus | 377.58 | 66.55 | 311.03 | 339.07 |
| Total Borrowing | 199 | 165.84 | 173.74 | 161.01 |
Key Performance Indicator – Zinka Logistics Solution IPO
| KPI | Values |
|---|---|
| Market Cap | ₹ 4,817.81 Cr. |
| EPS | ₹-12.41 |
| P/E (x) | -22 |
| ROE | 9.39% |
| ROCE | 1.50% |
| Debt/Equity | 0.47 |
| RoNW | 9.39% |
| P/BV | 14.6 |
Objects of the Issue:
The company intends to use the net proceeds for the following purposes:
- Supporting sales and marketing expenses;
- Investing in Blackbuck Finserve Private Limited, its NBFC subsidiary, to enhance its capital base for future growth needs;
- Financing product development costs;
- Covering general corporate expenses.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
