Zinka Logistics Solutions Limited is set to launch its Initial Public Offering (IPO) on Wednesday, November 13, 2024, with a price band of ₹259 to ₹273 per equity share. This marks a significant milestone for the company, which is India’s leading digital platform for truck operators, serving a user base of 963,345 truck operators, or 27.52% of the total in the country. The IPO comprises a fresh issue of up to ₹550 crore and an offer for sale of up to 20,685,800 equity shares by existing shareholders and promoters. A special discount of ₹25 per share will be offered to eligible employees participating in the IPO.
The proceeds from the fresh issue will be allocated to various growth initiatives, with ₹200 crore earmarked for sales and marketing to expand the company’s market presence. ₹140 crore will be invested in Blackbuck Finserve Private Limited to strengthen its capital base, while ₹75 crore will be used for product development and other corporate purposes. This strategic allocation of funds highlights Zinka Logistics’ commitment to expanding its services and further innovating in the trucking industry.
Zinka Logistics aims to revolutionize the trucking sector in India by leveraging digital technology to help truck operators manage operations more efficiently and increase their income. The company’s flagship product, the BlackBuck app, provides a comprehensive suite of services, including payment processing, telematics, load management, and vehicle financing. As of June 30, 2024, Zinka Logistics employed 1,849 permanent employees and 3,688 contract workers and operated a vast network of 9,374 touchpoints covering 80% of India’s districts and 76% of the toll plaza network.
In FY 2024, the company reported a 69.01% increase in consolidated revenue, reaching ₹296.92 crore, up from ₹175.68 crore in the previous fiscal year. This growth was driven by an increase in the average number of monthly transacting truck operators, resulting in higher commission income, subscription fees, and service fees. For the quarter ending June 30, 2024, Zinka Logistics achieved a revenue of ₹92.17 crore and a profit after tax of ₹28.67 crore.
The company processed a gross transaction value (GTV) of ₹5,356.20 crore in FY 2024, with a payment volume of ₹17,396.19 crore. Zinka’s payment platform, which facilitates essential expenses such as tolls and fuel for truck operators, partners with FASTag banks and various oil marketing companies (OMCs) to provide secure and efficient payment solutions. By the end of June 2024, the company had facilitated over 128.31 million transactions for 310,989 monthly users engaging in at least two services.
The IPO subscription window will remain open until Monday, November 18, 2024. Investors can bid for a minimum of 54 equity shares and multiples thereof. The IPO is being managed by Axis Capital Limited, Morgan Stanley India Company Private Limited, JM Financial Limited, and IIFL Capital Services Limited, with KFin Technologies Limited serving as the registrar. The issue is structured via a book-building process, with allocations set at 75% for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail individual investors. The IPO is expected to raise between ₹1,085.76 crore and ₹1,114.72 crore, with the fresh issue contributing ₹550 crore to ₹564.72 crore, depending on the price band. This offering is set to provide Zinka Logistics with the capital necessary to fuel its growth and strengthen its position in India’s competitive logistics sector.
Disclaimer: This content is for informational purposes only and does not constitute financial advice or an offer to buy or sell securities. Investors should conduct their research or consult a professional advisor before making investment decisions.
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