Mon Nov 18 07:12:16 UTC 2024: ## BlackBuck IPO Undersubscribed on Final Day
**Mumbai, November 19** – The initial public offering (IPO) of Zinka Logistics Solutions Ltd, the parent company of the BlackBuck trucking platform, closed undersubscribed on Monday. The IPO, which offered 22,470,786 shares priced between Rs 259 and Rs 273, received bids for only 8,913,078 shares, representing a 40% subscription rate.
While the retail individual investor (RII) portion was oversubscribed at 1.28 times, the qualified institutional buyer (QIB) and non-institutional investor (NII) portions were significantly undersubscribed at 0.25 times and 0.07 times, respectively.
The lackluster response is reflected in the zero grey market premium (GMP), indicating subdued investor expectations for the listing on November 21. Market observers attribute this to the company’s recent history of losses, despite turning profitable in the first quarter of fiscal year 2025. While the company reported a net profit of Rs 32.38 crore in Q1 FY25, on a total income of Rs 98.33 crore, it incurred substantial losses in the preceding three fiscal years.
Bajaj Broking issued a “subscribe for long term” recommendation, acknowledging the company’s position as India’s largest digital platform for truck operators but cautioning that the IPO is aggressively priced based on current earnings. They advise only well-informed investors with surplus cash and a high-risk tolerance to consider a moderate investment.
The IPO raised over Rs 501 crore from anchor investors. Proceeds from the fresh issue will be allocated to sales and marketing, investments in BlackBuck Finserve, product development, and general corporate purposes. Zinka Logistics aims to revolutionize India’s trucking industry through its comprehensive platform offering solutions for payments, telematics, load management, and vehicle financing. The company processed a Gross Transaction Value (GTV) of Rs 17,396.19 crore in payments during fiscal 2024. Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Capital Services served as book-running lead managers. Share allotment is expected on November 19.
First Piper 