Zinka Logistics' IPO to open on Nov 13; sets price at Rs 259-273 per share

Zinka Logistics Solutions Ltd, a digital platform for truck operators, on Friday said it has fixed a price band of Rs 259-273 per share for its Rs 1,115 crore initial share sale.

The Initial Public Offering (IPO) will open for public subscription on November 13 and conclude on November 18, the company announced.

The IPO is a combination of a fresh issue of shares worth Rs 550 crore and an offer of sale (OFS) of up to 2.06 crore shares. The OFS by promoters and investor selling shareholders is valued at Rs 565 crore at the upper end of the price band.

A discount of Rs 25 per equity share is being offered to eligible employees bidding in the employee reservation portion.

Proceeds from the fresh issuance to the extent of Rs 200 crore will be used for sales and marketing initiatives; Rs 140 crore for investment in Blackbuck Finserve for financing the supporting the capital base to meet future capital requirements; Rs 75 crore for funding of expenditure in relation to product development, and a portion will be used for general corporate purposes.

Zinka Logistics is dedicated to transforming the trucking industry in India by digitally empowering truck operators to manage their businesses and increase their earnings. The company's BlackBuck app serves as a comprehensive platform, providing solutions for payments, telematics, load management and vehicle financing.

The Bengaluru-based firm processed a Gross Transaction Value (GTV) of Rs 5,356.20 crore and Rs 17,396.19 crore in payments in the three months ended June 30, 2024, and fiscal 2024, respectively. The payments platform addresses significant expenses for truck operators, such as tolls and fuel.

The company partners with FASTag banks and multiple oil marketing companies (OMCs) to offer efficient and secure tolling and fuelling solutions, generating revenue through commission margins based on transaction values.

For the three months ended June 2024, the company's revenue from continuing operations stood at Rs 92.17 crore with a profit after tax of Rs 28.67 crore.

The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.

Axis Capital, Morgan Stanley India Company, JM Financial and IIFL Capital Services are the book-running lead managers to the issue.