Zinka Logistics Solutions Limited, widely known as BlackBuck, is set to launch its IPO, opening for subscription from November 13, 2024, to November 18, 2024. BlackBuck, a significant player in India’s digital trucking ecosystem, aims to raise approximately ₹1,114.72 crores. This fundraise is through a book-built issue combining a fresh issue of shares and an offer for sale (OFS) by existing stakeholders.
Retail investors can bid for a minimum of one lot, or 54 shares, at an investment of ₹14,742. The maximum retail allocation is capped at 13 lots, totaling 702 shares or ₹191,646. Meanwhile, HNI (High Net-worth Individuals) have varied allotment options, depending on the investment size:
The IPO includes a reservation of 26,000 shares specifically for employees at a ₹25 discount on the issue price. BlackBuck will list on the BSE and NSE, with a tentative listing date of November 21, 2024.
| Event | Date |
|---|---|
| IPO Opening | November 13, 2024 |
| IPO Closing | November 18, 2024 |
| Basis of Allotment | November 19, 2024 |
| Refund Initiation | November 20, 2024 |
| Credit of Shares | November 20, 2024 |
| Listing Date | November 21, 2024 |
BlackBuck’s pre-IPO shareholding is held primarily by the promoters—Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam—who will see their combined holding decrease post-IPO. The pre-IPO holding is 32.91%, expected to fall to around 27.84% post-issue, with the public holding increasing proportionally.
BlackBuck has shown impressive financial growth, with a 62.24% revenue increase and a 33.24% growth in PAT (Profit After Tax) between March 2023 and March 2024. Here’s a summary of recent financial highlights (in ₹ crores):
| Period Ended | Assets | Revenue | PAT | Net Worth | Total Borrowing |
|---|---|---|---|---|---|
| June 30, 2024 | 629.41 | 98.33 | 32.38 | 344.98 | 161.01 |
| March 31, 2024 | 654.32 | 316.51 | -193.95 | 311.29 | 173.74 |
| March 31, 2023 | 654.25 | 195.09 | -290.50 | 352.66 | 165.84 |
| March 31, 2022 | 899.68 | 156.13 | -284.56 | 585.08 | 199.00 |
Founded in April 2015, BlackBuck is India’s leading digital trucking platform, operating the BlackBuck app, which helps truck operators streamline business operations. The app offers services across payments, telematics, freight marketplace, and vehicle financing. In FY 2024, 963,345 truck operators used the platform, accounting for 27.52% of all Indian truck operators.
With a market capitalization of approximately ₹4,817.81 crores, BlackBuck’s financial ratios as of June 30, 2024, include:
BlackBuck’s profitability turnaround in FY 2025 signals a positive shift. Although the IPO may appear aggressively priced, it reflects the potential growth trajectory anticipated for the coming years.
The proceeds from BlackBuck’s IPO are earmarked for:
The lead managers for this IPO are renowned firms in the investment banking sector:
Kfin Technologies Limited will serve as the registrar, overseeing the allotment and refund processes for investors.
Opinions on BlackBuck’s IPO have varied, with some experts recommending it for its growth potential in India’s logistics sector, while others caution against its valuation. Dilip Davda, a well-known IPO analyst, suggests that the IPO may be a good fit for informed investors with a high-risk appetite, citing the company’s dominant market position, but warns that the pricing is on the higher side relative to current earnings.
BlackBuck’s IPO presents an intriguing opportunity for investors who are optimistic about India’s logistics industry and the growth of digital platforms. However, potential investors should carefully consider the aggressive pricing and recent profitability before making a decision. As always, conducting thorough research and understanding one’s risk tolerance are essential steps before participating in any IPO.
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