Details of BlackBuck’s (Zinka Logistics Solutions Limited) IPO:
Key IPO Details:
- Issue Size: ₹1,114.72 crores, including:
- Fresh Issue: ₹550 crores.
- Offer for Sale (OFS): ₹564.72 crores (20,685,800 shares).
- Price Band: ₹259 to ₹273 per share.
- Lot Size: 54 shares (minimum investment of ₹14,742).
- Employee Discount: ₹25 per share.
- IPO Type: Book-built issue.
- Shares on Offer:
- Pre-issue: 156,330,160 shares.
- Post-issue: 176,476,680 shares.
Timeline:
- IPO Open: November 13, 2024.
- IPO Close: November 18, 2024.
- Allotment Finalization: November 19, 2024.
- Listing Date: November 21, 2024 (on NSE and BSE).
Objectives of the IPO:
- Fund investments in BlackBuck Finserve (its NBFC subsidiary) for capital augmentation.
- Support product development and marketing efforts.
- General corporate purposes.
Financial Highlights:
- FY2024 revenue: ₹316.51 crores (up from ₹195.09 crores in FY2023).
- Loss reduced from ₹290.5 crores in FY2023 to ₹193.95 crores in FY2024.
- Net Asset Value (NAV): ₹16.89 per share.
- Earnings Per Share (EPS): -₹10.52 (FY2024).
Business Overview:
Founded in 2015, BlackBuck is a leading logistics-tech platform specializing in freight matching and trucking solutions in India. It digitizes freight services and provides real-time tracking, route optimization, and operational efficiency for truckers and shippers.
Risks and Opportunities:
- Risks: High competition in the logistics-tech sector, fuel price volatility, and regulatory challenges.
- Opportunities: Rapid digital adoption in logistics and growth in the Indian logistics sector, supported by government initiatives like GST.
The IPO offers an opportunity to invest in a prominent player in India’s logistics industry, but investors should consider the company’s profitability challenges before investing