Zinka Logistics IPO: GMP at 8% ahead of issue opening on Wednesday

The grey market premium (GMP) of Zinka Logistics stands at 8% or Rs 28, a day ahead of its initial public offering (IPO) on Wednesday, November 13.

The issue will remain available for subscription till November 18.

The Bengaluru-based company has fixed a price band of Rs 259-273 per share for the issue offer.


The offer comprises a fresh issue of shares amounting to Rs 550 crore and an offer for sale (OFS) by the selling shareholders of up to 2,06,85,800 shares of the company, which are valued at Rs 564.72 crore at the upper limit of the price band.

At this upper limit of the price band, the total size of the IPO stands at Rs 1,114.72 crore.

The issue opened for anchor investors on Tuesday, November 12, a day before it is available for retail investors. Bids can be made for a minimum of 54 shares and in multiples of 54 thereof.

Not less than 75% of the total issue has been reserved for qualified institutional buyers (QIBs), not more than 15% for non-institutional investors (NIIs) and up to 10% for retail investors. Up to 26,000 equity shares have been reserved for employees.

The proceeds from its fresh issuance will be utilised to fund sales and marketing costs, for investment in Blackbuck Finserve to finance the augmentation of its capital base, and for expenditure in relation to product development and general corporate purposes.

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The BlackBuck app, central to Zinka Logistics' offerings, empowers truck operators to manage various aspects of their operations. Through the app, operators can handle toll and re-fuel payments, monitor drivers and fleets using telematics, find loads on the marketplace, and access financing for purchasing used vehicles.

In FY24, the app saw robust engagement, with monthly active truck operators using it for over 16.18 days per month and spending an average of 39.56 minutes daily on the platform.

The company’s consolidated revenue from continuing operations increased by 69.01% to Rs 296.92 crore in FY24 from Rs 175.68 crore in FY23, primarily due to an increase in its average monthly transacting truck operators, which led to an increase in its commission income, subscription fees, and service fees.

Axis Capital, Morgan Stanley India, JM Financial, and IIFL Securities are the book-running lead managers and KFin Technologies is the registrar of the offer.

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