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HomeBANKINGIPO News: Gurugram-based Logistics Company Planning To Raise ₹550 Crore

IPO News: Gurugram-based Logistics Company Planning To Raise ₹550 Crore

Zinka Logistics Solutions: Blackbuck an affiliate of Bengaluru-based Zinka Logistics Solutions, is hoping to raise 550 crore rupees via an IPO.

Investors already invested will also be able to sell more than 2 crore shares during the IPO. It could be the second unicorn in logistics to be listed following Delhivery.

Zinka Logistics runs the Blackbuck mobile application that is designed for truckers. But, Delhivery has been listed on the market since May 20, 2022.

However, it couldn’t provide dividends to investors. In the five months before its debut the company raked in $99 million in Series J funding for $3.4 billion.

The logistics and supply chain company is still trading at the same price over two years after it was listed. However, it reached the highest valuation at $6.3 billion on July 20, 2022.

Following the listing, several investors in the early stages, such as SoftBank and Carlyle have sold their stakes within the firm.

What Is The Condition Of The Shares?

On the 24th of May 2022, Delhivery shares was listed on the NSE with a price of Rs 495 approximately 2 percent higher than the offering price, which was Rs 487 for each share.

The stock was traded at 399.65 rupees at the NSE in the Tuesday (July 9, 2024) session which is 20 percent less than the cost of offering.

Failed Despite A Better Subscription

Qualified institutional investors bid up to the limit for Delhivery’s IPO with a 2.66-time subscription. The retail category had a subscriber count of 57 percent, and the non-institutional category amounted to 30 percent.

However, Delhivery has been reporting losses for the past 6 years. Delhivery has suffered losses of over 1,000 crores rupees in the fiscal year 2022 and 2023 financial year.

Blackbuck has also been exhibiting the same trend. However, it has been able to limit some of the losses that occurred in FY 2024.

Company In Loss

In the report of its DRHP, BlackBuck reported a loss of 194 crore rupees in FY 2024, compared to the figure of Rs 290 crore for FY 2023. The company’s revenues grew by 69 percent, reaching Rs 297 crores during FY 2024.

The rating agency ICRA recently declared that Zinka Logistics is facing an uphill battle within the full truckload (FTL) road logistics market and this will influence Zinka Logistics’ pricing flexibility in this sector.

Zinka Logistics’ Plan

Zinka Logistics plans to use the money raised from the IPO for marketing, investment into its BlackBuck Finserv unit, and the development of new products.

The company’s online platform, BlackBuck serves as an interface between truckers and shippers within its market segment.

The app serves as an intermediary to any shipment that is made on the spot. Prices are determined through auctions by truckers who bid for the shipment.

By removing middlemen, the company can help truck drivers earn more money per ton.

Disclaimer: The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. 

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