BlackBuck IPO Day 2: Subscription zooms 2x, GMP holds flat; should you bid?

BlackBuck IPO subscription status: The initial public offering (IPO) of Zinka Logistics Solutions, the owner of the digital platform BlackBuck, which opened for subscription on Wednesday, November 13, 2024, has received a decent response from investors so far. As of 10:45 AM on Thursday, NSE data revealed that the Zinka Logistics IPO has been oversubscribed by 1.80 times.

 

Breaking down the numbers, Retail Individual Investors (RIIs) showed modest interest with a 2.73 times subscription, followed by Qualified Institutional Buyers (QIBs) at 2.06 times, and Non-Institutional Investors (NIIs) at 0.68 times.

 

BlackBuck IPO grey market premium (GMP)

Meanwhile, the grey market premium (GMP) for the BlackBuck IPO remains nil, as the company’s unlisted shares were trading flat, according to sources tracking grey market activities. IPO GMP generally reflects investor sentiment and demand, with a higher GMP indicating strong demand and potential for listing gains. That said, GMP is an unofficial and unregulated market indicator, subject to factors such as market conditions, company fundamentals, and investor enthusiasm.  Also Read: NTPC Green IPO: Does applying in shareholder quota boost allotment chance?

 

BlackBuck IPO details

At the upper end of the price band, the company seeks to raise Rs 1,114.72 crore by offering a fresh issue of 20,146,520 shares and an offer for sale of 20,685,800 shares with a face value of Re 1 apiece. The company has set the IPO price band at Rs 259-Rs 273, with a lot size of 54 shares. Investors can bid for a minimum of 54 shares and in multiples thereof. The minimum amount required by a retail investor to bid for one lot of the BlackBuck IPO is Rs 14,742.

 

KFin Technologies is the registrar for the BlackBuck IPO, while Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Securities are the Book Running Lead Managers.

 

The BlackBuck IPO will remain open for public subscription until Monday, November 18, 2024. Following this, the basis of allotment is expected to be finalised on Tuesday, November 19, 2024, with the company’s shares likely to be credited to demat accounts by Wednesday, November 20, 2024.

 

BlackBuck shares are likely to make their D-Street debut on Thursday, November 21, 2024, by listing on the BSE and NSE.

 

BlackBuck IPO review; should you subscribe?

Brokerages, including Anand Rathi Research, Swastika Investment, and Bajaj Broking, have reviewed BlackBuck's public offering and shared their outlook for investors. Anand Rathi Research Team and Bajaj Broking recommend bidding for the BlackBuck IPO from a long-term perspective. In contrast, Swastika Investmart has assigned a Neutral rating to the public offering. READ MORE 

About Zinka Logistics Solutions

Zinka Logistics Solutions (Zinka), incorporated on April 20, 2015, is the operator of BlackBuck, India's largest digital platform for truck operators, with 963,345 registered users in Fiscal 2024, representing 27.52 per cent of India's truck operators.