Bengaluru-based Zinka Logistics Solutions Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

Zinka Logistics aims to revolutionise the Indian transportation sector by equipping truck owners with digital tools to enhance their operations and profitability. The company’s innovative BlackBuck app offers a comprehensive platform that includes vehicle financing, load management, telemetry, and payment solutions.

The IPO, with a face value of Rs 1 per share, includes a fresh issue of Rs 550 crore and an offer for sale (OFS) by promoters and investors selling shareholders, totalling up to 21.61 million equity shares.

The following equity are a part of the offer for sale: 

The processed from the fresh issue of up to Rs 200 crore will be used to finance sales and marketing expenses, fund Rs 75 crore in product development and general corporate purposes, and they will invest Rs 140 crore in Blackbuck FInserve Private Ltd to finance the expansion of its capital base to meet its future capital requirements. 

The pre-IPO placement, if approved by the book-running lead manager and the company, may constitute up to 20% of the total amount of the fresh offering. Upon the completion of this placement, the size of the new issue will be adjusted accordingly.

For the Zinka Logistics Solutions IPO, the allocation of shares in the public issue is as follows: at least 75% is reserved for qualified institutional buyers (QIB), no more than 15% for non-institutional investors (NII), and up to 10% for retail investors.

The book-running lead managers for the IPO are Axis Capital Ltd, IIFL Securities Limited, JM Financial Ltd, and Morgan Stanley India Company Ltd. The registrar for the offer is KFin Technologies Ltd.