Mon Nov 18 07:54:47 UTC 2024: ## BlackBuck Parent’s IPO Shows Tepid Demand on Day 2

**MUMBAI, INDIA – November 15, 2024** – The initial public offering (IPO) of Zinka Logistics Solutions Ltd., the parent company of the BlackBuck trucking app, has received a lukewarm response after two days of trading. The ₹1,114.72 crore IPO, which opened on November 13th and closes November 18th, reached only 32% subscription by the end of the second day.

This underwhelming response contrasts with the significant attention generated by the IPO, given BlackBuck’s position as India’s largest digital platform for truck operators. While the retail investor segment showed strong interest (92% subscription), Non-Institutional Investors (NII) lagged significantly at 4%, and Qualified Institutional Buyers (QIBs) showed only 25% subscription. Employee subscriptions fared better, reaching 5.37 times over-subscription.

The muted response is also reflected in a zero grey market premium (GMP), meaning shares are currently trading at the IPO issue price of ₹273. The IPO comprises a fresh issue of ₹550 crore and an offer for sale of ₹564.72 crore. ₹501.33 crore was already raised from anchor investors prior to the public offering.

Zinka Logistics Solutions, established in 2015, uses the BlackBuck app to provide services such as payments, telematics, load marketplace, and vehicle financing to truck operators. The company reported a net loss of ₹193.95 crore on revenue of ₹316.51 crore for the fiscal year ending March 31, 2024, representing an improvement over the previous year.

The company plans to use the IPO proceeds for sales and marketing, investment in its NBFC subsidiary, product development, and general corporate purposes. The share allotment is expected on November 19th, with listing on the BSE and NSE on November 21st. Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Securities are the book running lead managers.

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