Zinka Logistics shares list at over 2% premium mirroring IPO GMP trend

BlackBuck stock debuted at Rs 279.05 on the BSE, reflecting a premium of Rs 6.05 or 2.21 per cent from its IPO allotment price of Rs 273.

Zinka Logistics Solutions listing today: Shares of Zinka Logistics Solutions, the parent company of digital freight platform BlackBuck, posted a subdued listing on Thursday. On the BSE, the stock debuted at Rs 279.05, reflecting a premium of Rs 6.05 or 2.21 per cent from its IPO allotment price of Rs 273. 

 

Similarly, on the NSE, BlackBuck listed at Rs 280.90, marking a premium of Rs 7.90 or 2.89 per cent from the issue price.

 

The listing also aligned with grey market trends, where BlackBuck’s unlisted shares were trading flat ahead of its debut, signalling a lacklustre opening, according to sources tracking grey market activity. 

According to Shivani Nyati, head of wealth at Swastika Investmart, this was a better-than-expected performance, considering the moderate subscription of 1.87 times and the lackluster pre-listing sentiment reflected in the zero Grey Market Premium (GMP).

 

 

"The company's strong network effects and position as a leading platform in the logistics industry have likely contributed to the positive listing. However, investors should remain cautious due to the company's past financial challenges, including losses and negative cash flow, and the ongoing legal challenges," Nyati said.

 

While the positive listing is encouraging, Nyati emphasised that it is crucial for investors to conduct thorough due diligence and assess the company's long-term growth prospects.

 

The listing of the company's shares, initially slated for November 21, 2024, as per the Red Herring Prospectus filed with SEBI, was postponed to November 22, 2024, in accordance with the T+3 listing rule, which mandates listing within three working days of issue closure. Notably, the stock exchanges were closed on November 20, 2024, due to state elections in Maharashtra, where the exchanges are headquartered.

 

The BlackBuck IPO, which closed on November 18, 2024, received a moderate subscription of 1.86 times. Qualified institutional buyers (QIBs) led the demand, subscribing 2.76 times their reserved portion, followed by retail investors at 1.16 times. Non-institutional investors (NIIs), however, showed limited interest, with a subscription rate of just 0.24 times.  

 

The public offering consisted of a fresh issue of 20.15 million shares and an offer for sale of 20.69 million shares, priced within a range of Rs 259-273 per share, with a lot size of 54 shares. The basis of share allotment was finalised on November 19, 2024.  

 

Brokerages had mixed views on the IPO. Anand Rathi Research and Bajaj Broking recommended long-term investments, citing growth potential, while Swastika Investmart assigned a neutral rating, highlighting concerns over valuations.  

 

Proceeds from the fresh issue will be used to fund sales and marketing efforts, strengthen BlackBuck Finserve, its NBFC subsidiary, augment capital needs, and support product development and general corporate purposes.  

 

Zinka Logistics Solutions, through its digital platform BlackBuck, offers services such as payments, telematics, load marketplaces, and vehicle financing. The company aims to streamline operations for truck operators by providing digital tools to enhance efficiency and profitability.