Mon Nov 18 12:36:14 UTC 2024: ## Zinka Logistics (BlackBuck) IPO Oversubscribed, but Grey Market Shows Cautious Outlook

**Mumbai, November 18, 2024** – The initial public offering (IPO) of Zinka Logistics Solutions Ltd, the operator of the BlackBuck trucking platform, closed today with 1.87 times oversubscription. Bids for 4,19,43,258 shares were received against the 2,24,70,786 shares offered.

While the Qualified Institutional Buyers (QIBs) portion was subscribed 2.72 times and the Retail Individual Investors (RIIs) portion 1.70 times, the Non-Institutional Investors (NIIs) segment saw only 0.24 times subscription. The IPO, priced between Rs 259 and Rs 273 per share, opened on November 13th.

Despite the oversubscription, the grey market premium (GMP) remains at zero, suggesting a potentially subdued listing according to market observers. This indicates some caution among investors.

The IPO, which raised over Rs 501 crore from anchor investors, consisted of a fresh issue worth Rs 550 crore and an offer for sale (OFS) of up to 2.06 crore shares. Proceeds from the fresh issue will be used for sales and marketing, investment in Blackbuck Finserve, product development, and general corporate purposes.

Zinka Logistics, India’s largest digital platform for truck operators, reported losses in the past three fiscal years but turned profitable in Q1 FY25, posting a net profit of Rs 32.38 crore on revenue of Rs 98.33 crore. Bajaj Broking recommends a “subscribe for long term” strategy, acknowledging the aggressive pricing but highlighting the company’s market position and potential long-term growth. However, they caution investors to proceed with informed caution given the company’s past losses.

The company’s BlackBuck app offers a range of services including payments, telematics, load management, and vehicle financing, processing a significant Gross Transaction Value (GTV). Share allotment is scheduled for November 19th, with listing expected on November 21st. Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Capital Services are the book-running lead managers.

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