Mumbai, November 08, 2024: Zinka Logistics Solutions Limited, India’s largest digital platform for truck operators (in terms of number of users), with 963,345 truck operators in the country transacting on our platform in Fiscal 2024, which comprises 27.52% of India’s truck operators, has fixed the price band of ₹259/- to ₹273/- per Equity Share of face value ₹1/- each for its maiden initial public offer.
The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Wednesday, November 13, 2024, for subscription and close on Monday, November 18, 2024. Investors can bid for a minimum of 54 Equity Shares and in multiples of 54 Equity Shares thereafter.
The IPO is a mix of fresh issue of up to Rs 550 crore and an offer of sale up to 20,685,800 equity shares by Promoters and Investors Selling Shareholders. A discount of Rs 25 per equity share is being offered to eligible employees bidding in the employee reservation portion.
The proceeds from its fresh issuance will be utilized to the extent of Rs 200 crore for funding towards sales and marketing costs, Rs 140 crore for investment in Blackbuck Finserve Private Limited for financing the augmentation of its capital base to meet its future capital requirements, Rs 75 crore for funding of expenditure in relation to product development, and general corporate purposes.
Zinka Logistics is dedicated to transforming the trucking industry in India by digitally empowering truck operators to manage their businesses and increase their earnings. The company’s innovative BlackBuck app serves as a comprehensive platform, providing solutions for payments, telematics, load management, and vehicle financing.
As of June 30, 2024, Zinka Logistics had a significant presence, employing 1,849 permanent employees and engaging 3,688 contract workers. By Fiscal 2024, the company had grown its fleet to 963,345 truck operators, up from 482,446 in Fiscal 2022, representing 27.52% of India’s truck operators. The company’s extensive reach is reflected in its network of 9,374 touchpoints (as of June 30,2024), covering 80% of India’s districts, including all major transportation hubs and 76% of the toll plaza network. This extensive network helps the company onboard and service customers efficiently.
Zinka Logistics processed a gross transaction value (GTV) of ₹5,356.20 crore and ₹17,396.19 crore in payments in the three months ended June 30, 2024 and Fiscal 2024. The payments platform addresses significant expenses for truck operators, such as tolls and fuel. The company partners with FASTag banks and multiple oil marketing companies (OMCs) to offer efficient and secure tolling and fueling solutions, generating revenue through commission margins based on transaction values.
As of and for the three months period ended June 30, 2024, Zinka Logistics had 310,989 monthly transacting users utilizing at least two services, facilitating over 128.31 million transactions. This reflects the company’s success in providing integrated solutions that cater to various needs of truck operators, enhancing their business operations and profitability.
Zinka Logistics’ consolidated revenue from continuing operations increased by 69.01% to ₹296.92 crore in Fiscal 2024 from ₹175.68 crore in Fiscal 2023, 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.
For the three months ended June 30, 2024, revenue from continuing operations stood at ₹92.17 crore and Profit after tax stood at ₹28.67 crore.
Axis Capital Limited, Morgan Stanley India Company Private Limited, JM Financial Limited, and IIFL Capital Services Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer.
The offer is being made through the book-building process, wherein not less than 75% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the net offer shall be available for allocation to non-institutional investors, and not more than 10% of the net offer shall be available for allocation to retail individual investors.
RHP: https://bb-website-public-assets.s3.ap-south-1.amazonaws.com/legal-assets/pdf/RHP.pdf
Issue Size of the IPO based on the upper and lower end of the price band
|
Fresh |
OFS (20,685,800 equity shares) |
Total |
| Lower Band (@Rs 259) |
Rs 550 crore |
Rs 535.76 crore |
Rs 1,085.76 crore |
| Upper Band (@Rs 273) |
Rs 550 crore |
Rs 564.72 crore |
Rs 1,114.72 crore |
