Tue Nov 19 02:43:32 UTC 2024: ## BlackBuck IPO Oversubscribed, but Grey Market Shows Cautious Outlook

**Mumbai, November 18, 2024** – Zinka Logistics Solutions Ltd.’s (BlackBuck) initial public offering (IPO) concluded today, closing with 1.87 times oversubscription. The IPO, priced between Rs 259 and Rs 273 per share, received bids for 4,19,43,258 shares against the 2,24,70,786 shares on offer.

While the Qualified Institutional Buyers (QIBs) portion was oversubscribed 2.72 times and the Retail Individual Investors (RIIs) portion 1.70 times, the Non-Institutional Investors (NIIs) segment showed weaker interest, with only 0.24 times subscription.

Despite the overall oversubscription, the grey market premium (GMP) remains at zero, suggesting a cautious outlook among some investors regarding the listing on November 21st. This contrasts with the positive response from Bajaj Broking, which recommended a “subscribe for long term” strategy, citing BlackBuck’s position as India’s largest digital platform for truck operators.

The IPO raised over Rs 501 crore from anchor investors and included a fresh issue of Rs 550 crore and an offer for sale (OFS) of up to Rs 565 crore. Proceeds from the fresh issue will fund sales and marketing, investments in BlackBuck Finserve, product development, and general corporate purposes.

BlackBuck, a Bengaluru-based company, provides a comprehensive platform for truck operators, including payments, telematics, load management, and vehicle financing. The company reported losses in previous fiscal years but turned profitable in Q1 FY25, reporting a net profit of Rs 28.67 crore on revenue of Rs 92.17 crore for the three months ended June 2024.

Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Capital Services acted as book-running lead managers for the IPO. The allotment of shares is scheduled for November 19th.

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