Zinka Logistics Solution Receives SEBI Approval for IPO

Zinka Logistics Solutions, the parent company of BlackBuck, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). The Bengaluru-based logistics startup, which filed its draft papers in July 2024, was issued the final observation letter from SEBI on October 3, clearing the way for its public listing.

What’s the Plan?

The IPO consists of a Rs.550 crore fresh issue of equity shares along with an offer-for-sale (OFS) of up to 2.16 crore shares by the company’s promoters and existing investors. Prominent shareholders participating in the OFS include Flipkart, Accel India, Tiger Global, and the company’s founders, Rajesh Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam.

The proceeds from the issue will be allocated for key business areas: Rs.200 crore is for sales and marketing, Rs.140 crore will be invested into BlackBuck Finserve, the company’s NBFC subsidiary, to strengthen its capital base, and Rs.75 crore will go towards product development and general corporate purposes. Additionally, the IPO includes a reserved portion for eligible employees at a discounted rate.

The BlackBuck Story  

Founded in 2015, BlackBuck is a B2B logistics platform that connects truck operators with businesses, providing a range of services such as payments, telematics, load management, and vehicle financing. BlackBuck operates across India, offering solutions to streamline inter-city full truckload (FTL) transportation.

Despite being loss-making, the company has made strides in improving its financial position. In FY24, BlackBuck’s net loss narrowed by 30%, from Rs.290.4 crore in FY23 to Rs.194 crore. Revenue from operations also showed growth, increasing by 69% to reach Rs.296.9 crore in FY24, up from Rs.175.6 crore in the previous year.

Conclusion: Zinka Logistics’ decision to go public comes amid a surge of IPOs in India’s startup ecosystem, with several tech-driven companies opting to list on the stock exchange. The upcoming IPO will provide BlackBuck with the capital to further expand its operations and strengthen its financial services for truck operators across the country.

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.