Zinka Logistics Solution Ltd. IPO
Zinka Logistics Solution Ltd IPO (BlackBuck IPO) is a book built issue of Rs 1,114.72 crores opening for subscription from November 13-18, 2024. BlackBuck is India's largest digital platform for truck operators, offering services like payments, telematics, freight marketplace, and vehicle financing.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
IPO Details and Timeline
1
IPO Opens
November 13, 2024
2
IPO Closes
November 18, 2024
3
Basis of Allotment
November 19, 2024
4
Initiation of Refunds
November 20, 2024
5
Credit of Shares to Demat
November 20, 2024
6
Listing Date
November 21, 2024
The IPO includes a reservation of up to 26,000 shares for employees offered at a discount of Rs 25 to the issue price. Axis Capital Limited, Morgan Stanley India Company Pvt Ltd, Jm Financial Limited and Iifl Securities Ltd are the book running lead managers, while Kfin Technologies Limited is the registrar for the issue.
About Zinka Logistics Solution Limited
Founded in April 2015, Zinka Logistics Solution Limited offers a digital platform, the BlackBuck app, for truck operators. In the fiscal year 2024, 963,345 truck operators in the country conducted their business through the platform, representing 27.52% of all Indian truck operators.
Zinka Logistics Solution's BlackBuck app is a platform that offers payments, telematics, a freight marketplace, and vehicle financing services to help truck operators achieve their goals efficiently.
1
Gross Transaction Value
As of March 31, 2024, the company had processed a Gross Transaction Value (GTV) of Rs. 173,961.93 million in payments.
2
Active Telematics Devices
As of March 31, 2024, the company had a monthly average of 356,050 active telematics devices.
3
Vehicle Financing
As of March 31, 2024, the company had facilitated 4,035 loans with a total value of Rs. 1,967.88 million and offered vehicle financing to customers in 48 districts across seven states in India.
Competitive Strengths
India's Largest Platform
India's largest platform for digital truck operators.
Wide Network
A wide network of truck operators built over the nine years of its existence.
New Offerings
New offerings to address market gaps and fulfil customer needs.
Strong Sales Network
A strong multi-channel sales network and an effective sales and service strategy promote customer acceptance.
The company also boasts high-growth business with operational leverage and high profitability, as well as an experienced management team. As of March 31, 2024, the company had 4,289 employees.
Financial Information
Zinka Logistics Solution Limited's revenue increased by 62.24% and profit after tax (PAT) rose by 33.24% between the financial year ending with March 31, 2024 and March 31, 2023.
Amount in ₹ Crore
Key Performance Indicators
The market capitalization of BlackBuck IPO is Rs 4817.81 Cr.
KPI as of June 30, 2024:
Financial Ratios
- ROE: 9.39%
- ROCE: 1.50%
- Debt/Equity: 0.47
- RoNW: 9.39%
- P/BV: 14.6
Pre IPO
- EPS (Rs): -12.41
- P/E (x): -22
Post IPO
- EPS (Rs): 7.34
- P/E (x): 37.2
Objects of the Issue
The company proposes to utilise the Net Proceeds towards funding the following objects:
- Funding towards sales and marketing costs;
- Investment in Blackbuck Finserve Private Limited, its NBFC subsidiary, for financing the augmentation of its capital base to meet its future capital requirements;
- Funding of expenditure about product development; and
- General corporate purposes.
IPO Review
BlackBuck is a leading digital platform for truck owners, offering a comprehensive range of services. The company experienced losses until FY24 but turned profitable in Q1-FY25. Based on the annualized earnings for FY25, the IPO appears priced aggressively.
Investors with significant cash reserves and a high risk tolerance may consider a moderate investment for the long term.