BlackBuck-Owner Zinka Logistics Lists At 2.9% Premium Over Issue Price

Shares of Flipkart backed-Zinka Logistics Ltd. listed on the BSE on Friday at Rs 279.05 apiece, a premium of 2.22% over the issue price of Rs 273 apiece. The stock listed at Rs 289.90 per dhare on the National Stock Exchange, marking a premium of 2.89%.

The maiden issue worth Rs 1,114.7 crore closed on Nov. 18, which was subscribed 1.86 times, led by qualified institutional buyers. The IPO consisted of a fresh issue of shares worth Rs 550 crore and an offer-for-sale of up to Rs 565 crore.

The date of listing of the scrip was moved from Nov. 21 to Nov. 22 because of the usual T+3 listing schedule as markets were shut on Wednesday.

The company will use Rs 200 crore from the proceeds towards sales and marketing costs, Rs 140 crore for investment in Blackbuck Finserve Pvt. and Rs 75 crore for funding of expenditure in relation to product development.

In the OFS portion, promoters Rajesh Kumar Naidu Yabaji, Ramasubramanian Balasubramaniam, and Chanakya Hridaya will sell a combined 44.38 lakh shares, along with other investors such as Accel India IV, Peak XV Partners, and the International Finance Corporation.

Axis Capital Ltd., Morgan Stanley India Co., JM Financial Ltd. and IIFL Securities Ltd. are the book-running lead managers of the BlackBuck IPO, while KFin Technologies Ltd. is the registrar for the issue.

Zinka Logistics is the parent of digital trucking services platform Blackbuck, which is backed by Flipkart. It offers various digital logistics services, including vehicle financing, fuel cards, FASTag services, and a marketplace connecting truck operators with businesses in need of transportation services.

Founded in 2015, BlackBuck entered the unicorn club in 2021, having raised over $350 million to date. The company has around 9.63 lakh customers on its platform.

As of Aug. 31, 2024, the company's outstanding borrowings on a consolidated basis aggregated to Rs 151.53 crore, as per their red herring prospectus.