BlackBuck IPO: GMP holds steady ahead of opening; key details for investors

The public offering of BlackBuck will remain open for subscription from Wednesday, November 13, 2024, to Monday, November 18, 2024

The unlisted shares of Zinka Logistics Solution, owner of the digital app platform BlackBuck, continue to trade at a premium in the grey markets ahead of the opening of its initial public offering (IPO) scheduled for Wednesday, November 13, 2024. 

 

Sources tracking grey market activities reveal that BlackBuck shares were trading at a premium of Rs 24 against the upper band of the IPO price, translating into a grey market premium (GMP) of 8.79 per cent. A positive GMP usually reflects favourable market sentiment for the public offering.

 

Before the BlackBuck IPO opens for public subscription, here are the key details investors should be aware of: 

 

 

BlackBuck IPO issue size  

Accoring to the Red Herring Prospectus (RHP),  at the upper end, the company seeks to raise Rs 1,114.72 crore from the public offering. BlackBuck IPO is a Book Built Issue comprising a fresh issue of 20,146,520 shares and an offer for sale (OFS) of 20,685,800 shares with a face value of Re 1 apiece. 

 

Promoters Rajesh Kumar Naidu Yabaji, Ramasubramanian Balasubramaniam, and Chanakya Hridaya are among those divesting their stakes via the IPO, along with investors including Quickroutes International, Accel India IV (Mauritius), International Finance Corporation, Internet Fund III, Peak XV Partners Investments VI (formerly SCI Investments VI), VEF AB (publ), and Sands Capital Private Growth II, who are participating in the OFS.

 

BlackBuck IPO lot size, price band  

The public offering of BlackBuck is available at a price band of Rs 253-273 with a lot size of 54 shares. Accordingly, 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 BlackBuck IPO is Rs 14,742.

 

For Small Non-Institutional Investors (sNII), the minimum lot size is 14 lots or 756 shares, aggregating to Rs 206,388. For Big Non-Institutional Investors (bNII), it is 68 lots or 3,672 shares, totaling Rs 1,002,456.

 

BlackBuck IPO timeline  

The public offering will remain open for subscription from Wednesday, November 13, 2024, to Monday, November 18, 2024. Following the closure of the subscription window, the basis of allotment is set for Tuesday, November 19, 2024, and shares are expected in demat accounts by Wednesday, November 20, 2024.

 

BlackBuck shares are expected to debut on the market on Thursday, November 21, 2024, by listing on the BSE and NSE.

 

BlackBuck IPO registrar, BLRM 

Kfin Technologies is the registrar for the public offering of BlackBuck. The Book Running Lead Managers for the BlackBuck IPO include Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Securities, as per the RHP.

 

BlackBuck IPO objective  

BlackBuck stated in the RHP that it will not receive any proceeds from the Offer for Sale, as each selling shareholder will be entitled to their respective portion of the proceeds after deducting offer-related expenses and relevant taxes. However, BlackBuck intends to utilise the proceeds from the fresh issue to fund sales and marketing costs and invest in BlackBuck Finserve, the company’s NBFC subsidiary, for capital augmentation to meet future requirements. The company will also use the proceeds to fund product development and general corporate purposes.

 

BlackBuck financial details  

According to the RHP filed by the company, revenue from operations was reported at Rs 92.16 crore in Q2FY25, up from Rs 59.46 crore in the corresponding quarter of the previous fiscal year. For FY24, it stood at Rs 29.69 crore, and for FY23, it was reported at Rs 17.56 crore.

 

In Q2FY25, the restated profit attributable to owners of Zinka Logistics Solutions stood at Rs 28.67 crore. Notably, the company reported a net loss of Rs 35.93 crore in Q2FY24. In FY24, the company posted a net loss of Rs 19.39 crore, while in FY23, it was Rs 29.04 crore.

 

About BlackBuck 

Zinka Logistics Solution's BlackBuck app is India’s leading digital platform for truck operators, offering a range of services including payments, telematics, a freight marketplace, and vehicle financing. BlackBuck simplifies operations for truck operators, helping them achieve their goals efficiently. The app has gained significant traction within India's truck operator community, and by leveraging technology, BlackBuck aims to transform the logistics industry.