Zinka Logistics Solution, the operator of the BlackBuck platform, made a muted debut on November 22, 2024. Shares listed at ₹280.90 on the NSE, a 2.89% premium over the issue price of ₹273. On the BSE, the listing price was ₹279.05, a 2.22% gain.
IPO Details and Subscription Status
The IPO, valued at ₹1,114.72 crore, was open for subscription from November 13 to November 18, 2024.
| Category | Subscription |
|---|---|
| Retail Investors | 1.70 times |
| Non-Institutional Investors (NII) | 0.24 times |
| Qualified Institutional Buyers (QIB) | 2.72 times |
Company Overview
Founded in 2015, Zinka Logistics Solution operates BlackBuck, a digital platform streamlining trucking operations in India. The platform offers services such as:
- Payments: Simplifying financial transactions for operators.
- Telematics: Tracking vehicle performance.
- Freight Marketplace: Connecting truck owners with businesses.
- Vehicle Financing: Providing financial support.
Financial Highlights
| Metric | FY24 | Q1 FY25 |
|---|---|---|
| Gross Transaction Value | ₹173,961.93 million | ₹45,990.48 million |
| Active Telematics Devices | 356,050 per month | Consistent growth |
| Loans Facilitated | 4,035 loans (₹1,967.88 million) | Growing demand |
Use of IPO Proceeds
- Investing in BlackBuck Finserve Private Limited.
- Enhancing product development initiatives.
- Funding marketing and sales expansion.
- Addressing general corporate expenses.
Growth Potential and Expert Opinions
Zinka Logistics is a leader in digitizing trucking operations, benefiting from:
- India’s growing logistics market.
- High adoption of digital platforms by truck operators.
Analyst View: Despite the lukewarm debut, Zinka’s business model and market leadership make it a potential long-term bet.
Key Risks
- High competition in the logistics tech sector.
- Regulatory uncertainties in digital payment systems.
Recommendation
Investors should consider Zinka Logistics for its long-term growth story, especially if the stock consolidates at lower levels.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult financial professionals before making investment decisions.
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