Zinka Logistics (Blackbuck) IPO Receives Subdued Response, Subscribed 0.24x on First Day

Zinka Logistics (Blackbuck) IPO Overview

Zinka Logistics, popularly known as Blackbuck, launched its IPO on Wednesday, November 13th, with the subscription window scheduled to close on November 18th. The IPO is priced between ₹259 to ₹273 per share, with a face value of ₹1.

Subscription Status

On its opening day, as of 5:00 PM on November 13th, the IPO was subscribed 0.24x. Here’s the breakdown of subscriptions:

• Qualified Institutional Buyers (QIB): Subscribed 0.25x
• Non-Institutional Investors (NII): Subscribed 0.02x
• Retail Individual Investors (RII): Subscribed 0.52x

The company received bids for 54,24,462 shares against a total offer size of 2,24,70,786 shares on its first day.

About Zinka Logistics (Blackbuck)

Founded in 2015 and based in Bengaluru, Blackbuck is India’s largest digital platform connecting truckers with shippers to streamline their operations. The platform allows users to efficiently manage orders and facilitates communication for order confirmations. The company has shown strong financial growth, with revenue increasing by 62% over the previous year. Key strengths include a capable management team, reputable client base, moderate client concentration, and healthy liquidity.

The IPO comprises a fresh issue of ₹550 crore alongside an offer for sale of 2.16 crore shares by existing shareholders.

Financial Performance

In FY24, the company reported a revenue of ₹316.51 crore, up from ₹195.09 crore in FY23. However, it posted a loss of ₹193.95 crore in FY24, which narrowed from a loss of ₹290.5 crore in the previous fiscal year.

Grey Market Premium (GMP)

As of Wednesday, November 13th, the grey market premium for Blackbuck’s IPO was ₹0, indicating that the shares were trading at the issue price of ₹273 without any premium.

The response on the first day reflects cautious investor sentiment, though the company’s strong market position and growth potential could attract further interest in the remaining subscription period.