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About Zinka Logistics Solutions IPO
Zinka Logistics Solutions is set to roll out a Rs 1,114.72 crore book. This IPO subscription is an amalgamation of a fresh issue of Rs 550 crore (2.01 crore shares) and an offer-for-sale of Rs 564.72 crore (2.07 crore shares). The company is set to debut on both NSE and BSE.
Retail investors need to invest a minimum of Rs 14,742. Small NII investors require a minimum investment of Rs 206,388 for 756 shares, which is 14 lots. Large NII investors need a minimum investment of Rs 1,002,456 for 3,672 shares, which is 68 lots.
Kfin Technologies Ltd is serving as the registrar for the issue. Axis Capital Ltd, Morgan Stanley India Company Pvt Ltd, Jm Financial Ltd and IIFL Securities Ltd are the book running lead managers in this IPO.
Zinka Logistics Solutions IPO GMP Details:
The latest GMP of Zinka IPO is Rs 24, as of 13th November, 2024 09:30 PM. The IPO has a price band of Rs 273. The estimated listing price for Zinka Logistics Solutions is Rs 273, reflecting a potential gain of 8.79% per share.
Zinka Logistics Solutions IPO Details
| Zinka Logistics Solutions IPO Opening Date and Closing Date | 13th November to 18th November |
| Face Value | Rs 1 per share |
| Price Band | Rs 259 to Rs 273 per share |
| Lot Size | 54 Shares |
| Total Issue Size | 40,832,320 shares (aggregating up to Rs 1,114.72 Cr) |
| Fresh Issue | 20,146,520 shares (aggregating up to Rs 550 Cr) |
| Offer for Sale | 20,685,800 shares (aggregating up to Rs 564.72 Cr) |
| Employee Discount | Rs 25 per share |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 156,330,160 |
| Shareholding Post Issue | 176,476,680 |
| Basis of Allotment | Tuesday, 19th November, 2024 |
| Refund Initiation | Wednesday, 20th November, 2024 |
| Credit of Shares in Demat | Wednesday, 20th November, 2024 |
| Listing Date | Thursday, 21st November, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 18th November, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Zinka Logistics Solutions Company Insights
Zinka Logistics Solution Limited, founded in April 2015, operates the BlackBuck app, a digital platform for truck operators. In fiscal year 2024, 963,345 truck operators, or 27.52% of all truck operators in India, used this platform for their business.
The BlackBuck application delivers payment options, telematics services, a cargo exchange, and vehicle leasing services for transport vehicle owners.
By 31st March, 2024, Zinka Logistics processed Rs 173,961.93 million in payments.
As of 31st March, 2024, the platform had a monthly average of 356,050 active telematics devices and facilitated 4,035 loans worth Rs 1,967.88 million.
The company offers vehicle financing services in 48 districts across seven states in India.
As of 31st March, 2024, the company had 4,289 employees.
Zinka Logistics Solutions Lot Size, Shares, And Their Value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 54 | Rs 14,742 |
| Retail (Max) | 13 | 702 | Rs 191,646 |
| S-HNI (Min) | 14 | 756 | Rs 206,388 |
| S-HNI (Max) | 67 | 3,618 | Rs 987,714 |
| B-HNI (Min) | 68 | 3,672 | Rs 1,002,456 |
Investor categories and Zinka Logistics Solutions shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75.00% of the offer |
| Retail Shares Offered | Not more than 10.00% of the Offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
Zinka Logistics Solutions Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 654.32 Cr. | Rs 654.25 Cr. |
| Revenue | Rs 316.51 Cr. | Rs 195.09 Cr. |
| Profit After Tax | Rs -193.95 Cr. | Rs -290.50 Cr. |
| Net Worth | Rs 311.29 Cr. | Rs 352.66 Cr. |
| Reserves and Supplies | Rs 311.03 Cr. | Rs 66.55 Cr. |
| Total Borrowing | Rs 173.74 Cr. | Rs 165.84 Cr. |
Should You Invest in the Zinka Logistics Solutions IPO?
Financial Performance:
Revenue: The company generated Rs 98.33 crore in revenue during the period ended on 30th June, 2024.
Profit After Tax (PAT): The company earned a profit of Rs 32.38 crore after deducting taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 344.98 crore.
Financial Position:
Assets: The company’s total assets amounted to Rs 629.41 crore.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 339.07 crore.
Total Borrowing: The company has borrowed a total of Rs 161.01 crore.
Zinka Logistics Solutions Key Performance Indicators (KPI) and their values:
The market capitalisation of Zinka Logistics Solutions IPO is Rs 4817.81 crore. As of 30th June, KPI and their values are:
| KPI | Values |
| Return on Equity (ROE) | 9.39% |
| Return on Net Worth (RoNW) | 9.39% |
| Price to Book Value (P/BV) | 14.6 |
| Debt/Equity | 0.47 |
| Return on Capital Employed (ROCE) | 1.50% |
Objectives of Zinka Logistics Solutions IPO
The company plans to use the Net Proceeds for:
- Covering sales and marketing expenses.
- Investing in its NBFC subsidiary, Blackbuck Finserve Private Limited, to strengthen its capital base for future needs.
- Funding product development costs.
- General corporate purposes.
Some major risks associated with the Zinka Logistics Solutions IPO are:
- The company and its subsidiaries, TZF Logistics Solutions and Blackbuck Finserve, have faced losses and negative cash flows in the past.
- In its RHP, the company stated its reliance on key suppliers for vehicle tracking solutions, with potential risks if these partnerships end.
- The vehicle financing business involves risks with high-risk borrowers and collateral recovery, which could negatively impact the company.
- Zinta Logistics has identified that the road transportation sector and fuel costs may impact its operations.
Frequently Asked Questions (FAQs)
What is the price band of Zinka Logistics Solutions’ IPO?
Price band has been fixed at Rs 259 and Rs 273 per share.
What is the retail investor quota of Zinka Logistics Solutions’ IPO?
A maximum of 10% shares shall go to the retail investors.
Where can I track Zinka Logistics Solutions’ stock performance?
You can track it on Unicorn Signals after listing.
How can I apply for Zinka Logistics Solutions’ Initial Public Offer?
Through your demat account or through your bank/financial institution during the IPO period.
When is the Last Date of IPO subscription for Zinka Logistics Solutions?
The cut-off time is 18th November, 2024, at 5 PM; however, most brokers stop accepting applications between 1-3 PM.
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