The BlackBuck IPO is a book-built issue valued at ₹1,114.72 crores, comprising a fresh issue of 2.01 crore shares totalling ₹550 crores and an offer for sale of 2.07 crore shares amounting to ₹564.72 crores. The IPO opens for subscription on November 13, 2024, and closes on November 18, 2024, with the allotment likely finalised on November 19, 2024.
The tentative listing on the BSE and NSE is set for November 21, 2024. The price band is set between ₹259 and ₹273 per share, with a minimum lot size of 54 shares for retail investors, requiring an investment of ₹14,742.
For sNII investors, the minimum is 14 lots (756 shares) at ₹206,388, and for bNII, 68 lots (3,672 shares) at ₹1,002,456. Up to 26,000 shares are reserved for employees at a ₹25 discount. Axis Capital, Morgan Stanley, JM Financial, and IIFL Securities are lead managers, with KFin Technologies as the registrar.
Industry Outlook:
- Research shows every ₹100 spent on infrastructure boosts GDP by ₹245. With ₹11.11 trillion allocated in FY 2024-25, significant economic growth is anticipated.
- The Indian trucking industry, with 12.5 million trucks, has achieved an 8-9% CAGR in freight value since FY 2020, supporting sustained logistics expansion.
Blackbuck IPO Objectives
Zinka Logistics Solution Limited plans to allocate the net proceeds from the issuance to the following purposes:
- Funding towards sales and marketing costs.
- Investment in Blackbuck Finserve Private Limited, an NBFC subsidiary, for financing the augmentation of its capital.
- Base to meet its future capital requirements.
- Funding of expenditure to product development.
- General corporate purposes.
About Zinka Logistics Solution Limited (Blackbuck)
Zinka Logistics Solution Limited, founded in April 2015, operates the BlackBuck app, a digital platform designed to streamline operations for truck operators in India. In fiscal year 2024, the platform engaged 963,345 truck operators, representing 27.52% of the national total.
The BlackBuck app offers comprehensive services, including payments, telematics, a freight marketplace, and vehicle financing. As of March 31, 2024, Zinka reported a Gross Transaction Value (GTV) of ₹173,961.93 million, with toll and fuel recharges driving significant volumes.
The company’s telematics services had a monthly average of 356,050 active devices, enhancing fleet management. BlackBuck’s vehicle financing covered 48 districts across seven states, facilitating 4,035 loans worth ₹1,967.88 million.
The platform’s loads marketplace had 2.12 million load postings in fiscal 2024, helping 256,685 truck operators find suitable loads. Zinka Logistics employed 4,289 people as of March 2024, underscoring its role in the digital transformation of India’s trucking industry.
How to Check the Allotment Status of the Blackbuck IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Blackbuck IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Blackbuck IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Blackbuck IPO
- Registered office: Vaswani Presidio, no. 84/2, II Floor, Panathur Main Road, Kadubeesanahalli, Off Outer Ring Road, Bengaluru 560 103, Karnataka, India
- Phone: +91 8046481828
- E-mail: cs@blackbuck.com
Application Details of Blackbuck IPO
| Category | Price Range (₹) | Maximum Application Amount (₹) |
|---|---|---|
| General Investors | ₹259 - ₹273 | 2 lakh |
| High Net-Worth Individuals (HNIs) | ₹259 - ₹273 | 2 - 5 lakh |
For the Blackbuck IPO, eligible participants include General Investors and High net-worth individuals, with specific limits on application amounts for each category.
Blackbuck IPO Reservation
| Investor Category | Percentage of Shares Offered from Net Issue |
|---|---|
| Qualified Institutional Buyers (QIB) | Not less than 75% of the Net Issue |
| Retail Investors | Not less than 10% of the Net Issue |
| Non-Institutional Investors (NII/HNI) | Not more than 15.00% of the Net Issue |
This table outlines the share allocation for different investor categories in the Blackbuck IPO.
Blackbuck IPO Promoter Holding
Zinka Logistics Solution Company is the promoter, with 100.00% ownership before the issue and a reduced stake after the IPO is yet to be announced.
| Promoter | Zinka Logistics Solution Company |
|---|---|
| Pre-IPO Shareholding | 32.91% |
| Post-IPO Shareholding | 27.84% |
Blackbuck IPO Registrar and Lead Manager(s)
Blackbuck Solar Holdings IPO Lead Managers:
- Axis Capital Limited
- Morgan Stanley India Company Pvt Ltd
- Jm Financial Limited
- Iifl Securities Ltd
Registrar for Blackbuck IPO:
Kfin Technologies Limited- Contact Number: 04067162222, 04079611000
- Email Address: zinka.ipo@kfintech.com
- Website: Blackbuck IPO Registrar
IPO Financials
| Particulars | As at and for the quarter ended June 30, 2024 | As at and for the Year ended March 31, 2024 | As at and for the quarter ended June 30, 2023 |
|---|---|---|---|
| Total Income (in ₹ million) | 983.30 | 3,165.14 | 643.59 |
| Annual transacting truck operator (x) | NA | 963,345 | NA |
| Contribution Margin (%) | 93.27% | 91.10% | 91.07% |
| Return on capital employed (%) | 1.50% | (33.84%) | (6.65%) |
| Profit After Tax (PAT) (in ₹ million) | 323.78 | (1,669.86) | (333.18) |
| Total Borrowings (in ₹ million) | 1,610.11 | 1,737.35 | 1,580.76 |
| Net Worth (in ₹ million) | 3449.79 | 3,112.93 | 3335.43 |
| Return on Net Worth (%) | 9.39 | (53.64) | (9.99) |
| Earning Per Share (EPS)-in absolute ₹ | 1.76 | (9.06) | (1.82) |
Know before investing
Strengths
6Largest digital platform for truck operators, serving 27.52% nationally.
Facilitated over 413.34 million transactions in Fiscal 2024.
Serves truck operators across 628 districts, 80% of India.
Offers multilingual support: English, Hindi, Kannada, Tamil, Telugu.
Strong customer retention: 93.51% first-year retention rate.
Extensive telematics usage: 356,050 active devices monthly in 2024.
Risks
6Significant losses: ₹1,944.97 million pre-tax loss in Fiscal 2024.
Heavy reliance on key partners for 42.50% of revenue.
Negative cash flow from operations in previous financial years.
High dependence: Payments and telematics contributed 94.53% of revenue in 2024.
Risk of termination: Non-exclusive agreements with key partners.
Regulatory changes could impact FASTag commission revenue and profitability.
Peer Comparison
| Company Name | Face Value (₹) | EPS (Basic) (₹) | EPS (Diluted) (₹) | Return on Net Worth (%) |
|---|---|---|---|---|
| Zinka Logistics Solutions Limited | 1 | (10.52) | (10.52) | (53.64) |
| C.E. Info Systems Ltd | 2 | 24.78 | 24.58 | 0.20 |
| FLEETCOR Technologies, Inc | 0.08337 | 1,118.83 | 1,100.48 | 0.30 |
| Full Truck Alliance Co. Ltd | 0.0008337 | 0.83 | 0.83 | 0.06 |
