BlackBuck Hits the Market: Details About Its Rs 1115 Crore IPO

Zinka Logistics Solutions Ltd., the parent company of digital trucking platform BlackBuck, is to list its shares on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on Friday, November 22, 2024, at 10 a.m. The IPO raised Rs.1,115 crore through a mix of fresh issue and offer-for-sale, marking a big achievement for the Flipkart-backed company.

IPO Overview & Subscription Details

The IPO was open for subscription from November 13 to November 18, 2024, with a price band set between Rs.259 and Rs.273 per share. It received a muted response, being subscribed 1.86 times, led primarily by Qualified Institutional Buyers (QIBs) with a subscription rate of 2.76 times. Retail investors and Non-Institutional Investors (NIIs) subscribed 1.65 times and 24%, respectively.

The lot size was fixed at 54 shares, requiring a minimum investment of Rs.13,986. The share allotment was finalized on November 19, and shares were credited to successful applicants on November 20.

Background & Business Model

Founded in 2015, BlackBuck operates as a digital trucking services platform, offering solutions such as vehicle financing, fuel cards, FASTag services, telematics, and a marketplace for truck operators and businesses. The company, which became a unicorn in 2021, has a customer base of approximately 9.63 lakh users.

BlackBuck collaborates with FASTag banks and oil marketing companies (OMCs) to provide tolling and fueling solutions, earning revenue through commission margins on transactions. The proceeds from the IPO will be used to fund sales and marketing, invest in its NBFC subsidiary, boost product development, and for general corporate purposes.

Grey Market Premium & Listing Outlook

The Grey Market Premium (GMP) for Zinka Logistics shares remained flat at Rs.273, suggesting no premium over the IPO price. Early investors, however, could see gains of up to 5x based on acquisition costs.

Conclusion: Zinka Logistics’ listing on November 22 is an important event, marking its transition to public ownership. While its digital ecosystem positions it as a leader in India’s trucking industry, investor sentiment during its debut will be closely watched.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.