Zinka Logistics IPO GMP : Date, Price, and Details

Introduction to Zinka Logistics IPO

Zinka Logistics Solution Limited, branded as BlackBuck, is one of India’s top players in the logistics industry. Founded in April 2015, it offers a digital solution for truck operators through its services: telematics, vehicle finance, a freight marketplace, and payment solutions. BlackBuck marks an essential role in the process of India’s digitalization of logistics since it serves 963,345 truck operators in India in FY 2024, which is 27.52 percent of the country’s total truck operators.

Zinka Logistics had an impressive fiscal year ending on March 31, 2024, with a revenue growth of 62% and profit after tax at 33%. The company’s services enabled it to process a gross transaction value (GTV) of approximately ₹17,396 crore by the end of FY 2024. BlackBuck further extends its support to fleet management through 356,050 active telematics devices every month, helping truck operators on how to manage routes and optimize fleet performance. The company provides financing services for vehicles, aiding the disbursement of over ₹196 crore of loans spread across 48 districts in seven states.

Zinka Logistics Solution readies for IPO and so raises about ₹1,114.72 crore as part of a new issue and via an offer-for-sale by existing investors. The IPO would open on November 13, 2024, at a price band of ₹259 to ₹273 per equity share, while it is expected to list on both NSE and BSE on November 21.

Key highlights of Zinka Logistics :

Digital Platform: BlackBuck possesses an extensive digital platform, which connects the truck operators with businesses that require freight services. The facilities range from route optimization tracking through telematics to payment solutions and even financing for vehicle ownership.
Market Presence: The marketplace services an enormous number of truck operators in India, making it a market leader in the digital freight marketplace. By FY 2024, the company was working with more than 963,000 truck operators, which translates to approximately 27.5% of the total truck operators present in India.
Financial Growth: Zinka Logistics has seen steady financial growth and its revenue has increased by 62% year over year during FY2024. The company had processed more than ₹17,396 crore in gross transaction value by March 2024, underlining its huge contribution to India’s logistics sector.
Vehicle Financing: BlackBuck not only offers freight services but also provides financing to truck operators by facilitating loans worth more than ₹196 crore.
Technology and Innovation: The company continues investing in technology development using data and AI to optimize the management of fleets and reduce operational costs to streamline logistics processes.

Zinka Logistics IPO Details

Zinka Logistics IPO would be a book built issue to raise ₹1,114.72 crore. It will comprise a fresh issue from the company and an offer for sale from selling shareholders. Zinka Logistics IPO would go live for subscription from November 13, 2024 to November 18, 2024. November 19, 2024 has been scheduled as the date for share allotment. The stocks will come alive on the BSE, NSE platforms from November 21, 2024.

Zinka Logistics IPO had the price band at ₹259 to ₹273 per share.The minimum lot size for an application is 55 shares. Hence, for retail investors, the minimum investment amount is ₹15,015. For HNIs, it is 10 lots (550 shares), thus ₹150,150. For QIBs, it will be as per the institutional category in the bidding process, with no particular lot size.

The book-running lead managers for Zinka Logistics IPO would be Axis Capital, Morgan Stanley India, JM Financial, and IIFL Securities, and the registrars for the issue would be KFin Technologies.

Zinka Logistics IPO GMP Dates and Timeline

IPO Opening Date	November 13, 2024
IPO Closing Date	November 18, 2024
Anchor Investor Bidding Date	November 12, 2024
Allotment Finalization	November 19, 2024
Listing Date	November 21, 2024
Price Band	₹259 to ₹273 per share
Lot Size	55 shares
Minimum Investment	₹15,015 (for retail investors)

Zinka Logistics IPO to get listed in BSE and NSE : share allotments to be done by the company on or before the date of 19th November 2024, listing on an exchange would happen on November 21, 2024; shares of this company are going to be sold within the price band of ₹259 to ₹273 per equity share thereby reaching all kinds of investors, including retail ones.

Zinka Logistics IPO Lot allotment

Application	Lots	Shares	Amount
Retail (Min)	1	54	₹14,742
Retail (Max)	13	702	₹191646
S-HNI (Min)	14	756	₹206388
S-HNI (Max)	67	3618	₹98,7714
B-HNI (Min)	68	3672	₹10,02,456

Zinka Logistics IPO Investment Details

Retail Investors: For retail investors, the lot size is of 55 units, and investment has to be ₹15,015.
High Net-Worth Individuals (HNIs): At least 10 lots can be applied for, and 10 lots translate to 550 shares, amounting to ₹150,150.
Qualified Institutional Buyers (QIBs): The bidding under the QIBs category would be institutionalized, and accordingly, the minimum lot size would be determined.

Zinka Logistics IPO GMP and Listing Expectations

Zinka Logistics IPO GMP (Grey Market Premium) is Rs. 40 currently and it is expected to list at Rs. 313 (cap price + today’s GMP). This would imply a gain of 14.7 % on the listing day. The finance of the company has done an impressive growth and is holding a great position in the market of logistics. Therefore, the listing would definitely attract much attention.

Risks and Challenges

Despite its strong performance, there are inherent risks associated with investing in Zinka Logistics IPO :

Dependence on logistics industry growth: The company’s performance depends in part on the growth of India’s logistics and freight sectors, and their results may be susceptible to economic recession or changes in regulation.
Competition: The digital logistic market is getting increasingly competitive as there are several established players eyeing the market share. Zinka would have to remain an innovative competitor as compared to its rivals.
Execution Risks: It would require significant investments for the expansion of its technological capability and market footprint. If the plans are not executed well by Zinka, it may create problems in sustaining the growth pace.

Conclusion

Zinka Logistics is poised to benefit from India’s growing logistics and digital transformation trends, making its IPO an exciting opportunity for investors. One such company with promising markets, an impressive performance history, and huge growth ambitions that bode well in capturing rapidly increasing demand for efficient logistic services within India is Zinka Logistics. Investors should, therefore, watch out for the dates of the IPO, consider the price band, minimum investment requirements, and the gains expected from listing before they make up their minds about the investment.