Blackbuck IPO: Date, Price, GMP, Overvaluation

Blackbuck IPO-Complete Overview

Blackbuck (Zinka Logistics) IPO a Mainboard IPO is a book-built issue of Rs.1,114.72 crore (40,832,320 Shares) by Zinka Logistics Solution Limited. The company was founded in April 2015 and provides truck drivers with a digital platform called the BlackBuck app. 9,63,345 truck operators nationwide, or 27.52% of all truck operators in India, used the platform to do business during FY2024.

The BlackBuck app from Zinka Logistics Solution is a platform that helps truck drivers accomplish their objectives effectively by providing telematics, payments, a freight marketplace, and auto financing options.

By March 31, 2024, the company has completed payments of Rs.1,73,961.93 million in Gross Transaction Value (GTV). As of March 31, 2024, the company has arranged 4,035 loans totaling Rs.1,967.88 million and has an average of 356,050 active telematics devices every month.

This new IPO is to be launched on 13 November 2024, and the initial public offering of this upcoming IPO will end on 18 November 2024.

Blackbuck IPO Overview

The Rs.1,114.72 crore Blackbuck IPO comprises a fresh Issue of 2.01 crore Shares (Rs.550 Cr) and an offer for sale (OFS) of 2.07 crore Shares (Rs.564.72 Cr). Zinka Logistics IPO shareholder quota is 10% allocated to retail investors, 75% to institutional investors, and 15% to non-institutional investors. The IPO listing date is on November 21, 2024.

If you want to apply for the IPO, Click Here to open a Demat Account.

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Company Financial

The company’s revenue grew by 62.24% and PAT increased by 33.24% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in million)

 

Segment-wise Revenue Bifurcation

(Values in millions)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Funding for marketing and sales expenses.

• Investment in its NBFC subsidiary, Blackbuck Finserve Private Limited, to finance the expansion of its capital base to satisfy its future capital needs.

• Financing of product development expenses.

• Corporate Purposes.
  
  

Peers of Zinka Logistics Solution Limited

 

Evaluation

Zinka Logistics IPO price is between Rs.259 to Rs.273 for each Share.

Evaluation of P/E Ratio

Its EPS is negative so the P/E ratio can not be determined.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 305.96x.

 

IPO's Strengths 

• According to the Redseer Report in Fiscal 2024, Zinka Logistics Solutions asserts in their RHP that, as of March 31, 2024, it is the largest digital platform for truck operators in India in terms of user count.

• According to the RHP, the logistics solutions company gains from having a wide network of platforms, which leads to strong customer retention rates and increased revenue.

• Since the company is committed to developing creative solutions to the problems encountered by truck operators in India, it has a scalable strategy for developing and introducing new products.

• Because of its asset-light business strategy, which is centered on providing services to truck operators and making money through platform fees and subscriptions, it is a fast-growing company with operating leverage and solid unit economics.

 

IPO’s Weaknesses 

• The business has previously experienced losses and negative operating cash flows, as has its subsidiary TZF Logistics Solutions Private Limited. Furthermore, Blackbuck Finserve Private Limited, a subsidiary, has previously had negative operating cash flows.

• According to the company's RHP, a sizable amount of its vehicle tracking solutions are sourced from a few main providers. The business of the company could suffer if the connection were to end.

• Its car finance business exposes it to several risks that could negatively impact its operations, including high-risk borrowers and collateral recovery.

• Zinka Logistics further stated that changes in the road transportation sector and the price of fuel could have an impact on its business operations.

 

Blackbuck IPO (Zinka Logistics) GMP

Blackbuck (Zinka Logistics) IPO GMP today is Rs.0 as of 08 November 2024. With the price band of Rs.273, the estimated listing price is Rs.273 (at the time of writing this information).

Blackbuck IPO Timetable (Tentative)

The Blackbuck IPO date is from 13 November to 18 November, with IPO allotment on 19 November, and refund initiation on 20 November. The IPO listing date is on 21 November 2024.

 

Blackbuck IPO (Zinka Logistics) Details

Blackbuck IPO's share price is between Rs.259 to Rs.273 for each Share. The IPO with a face value of Rs.1 per Share offers a total issue size of 40,832,320 Shares with a Lot size of 54 Shares it will be listed at BSE and NSE.

Blackbuck (Zinka Logistics) IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (54 Shares) amounting to Rs.14,742 and 13 Lots (702 Shares) amounting to Rs.1,91,646 respectively, while for HNI investors, the minimum Lot is 14 (756 Shares) amounting to Rs.2,06,388.

IPO Reservation

Promoters and Management of Zinka Logistics Solution Limited. 

• Rajesh Kumar Naidu Yabaji

• Chanakya Hridaya

• Ramasubramanian Balasubramaniam.

 

Zinka Logistics IPO Lead Managers

• Axis Capital Limited

• Morgan Stanley India Company Pvt Ltd.

• JM Financial Limited

• IIFL Securities Ltd.
  
  

Dividend Policy

The company has not paid any dividends in the last three fiscals.

Conclusion

The Blackbuck (Zinka Logistics) IPO is an opportunity to participate in India's largest digital trucking platform. The company is strong and has a solid customer base; however, the challenges include facing losses and operational issues. Each potential investor must always weigh the company's growth prospects against its financial risks.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

DISCLAIMER: The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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