Last updated:November 21, 2024, 1:21 PM IST

Unlisted shares of Zinka Logistics Solutions Ltd are trading at Rs 273 apiece in the gray market, which is the same as its IPO price of Rs 273. Zero GMP indicates an unchanged or even negative listing for the IPO.

Zinka Logistics Solutions IPO.

Zinka Logistics Solutions IPO date: Zinka Logistics Solutions Ltd (or BlackBuck Ltd), which was scheduled to list on the BSE and NSE on Thursday, has postponed its listing to Friday. As per norms, a company is mandated to list its shares within three days of that IPO end date (T+3). The IPO usually takes place at 10:00 AM.

IPO’s GMP continues to be zero for the last 10 days. According to market observers, unlisted shares of Zinka Logistics Solutions Ltd are trading at Rs 273 each in the gray market, which is the same as its IPO price of Rs 273.

Zero GMP indicates a flat or even negative listing for the IPO.

GMP is based on market sentiment and is constantly changing. “Grey market premium” indicates the willingness of investors to pay more than the issue price.

The initial public offering of digital platform for truck operators Zinka Logistics Solutions Ltd opened for subscription between 13 November and 18 November. So according to the rules, the IPO must be listed by November 22 at the latest.

The Rs 1,100 crore IPO was subscribed 1.87 times and saw 4,19,43,258 shares bid against the 2,24,70,786 shares on offer.

According to the red herring prospectus, Zinka Logistics Solutions’ IPO was initially scheduled to take place on November 21, 2024. However, the listing has been postponed by a day due to the closure of stock exchanges on November 20, 2024, due to the Maharashtra Assembly elections.

Zinka Logistics Solutions IPO: What should investors do after listing?

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said, “Zinka Logistics, a leading digital platform for trucking operators, is gearing up for its IPO. While the IPO has been decently subscribed at 1.87 times, the current gray market premium (GMP) indicates at 0% a potential for a flat or even negative listing.”

The company’s strong network effects and position as a leading platform in the logistics industry are positive factors. But financial challenges, including ongoing losses and negative cash flow, raise concerns. In addition, the company’s legal challenges and recent layoffs indicate operational difficulties. The low promoter holdings further add to investor skepticism, she added.

“Given the company’s financial performance, operational challenges and the lack of a clear valuation metric, investors are advised to exercise caution,” Nyati said.

Zinka Logistics Solutions IPO: More information

Zinka Logistics Solutions on Tuesday mobilized over Rs 501 crore from anchor investors, a day before the initial share sale opened for public subscription.

The IPO is a combination of a fresh issue of shares worth Rs 550 crore and an offer for sale (OFS) of up to 2.06 crore shares. OFS by promoters and investors selling shareholders is valued at Rs 565 crore at the upper end of the price band.

A discount of Rs 25 per share is offered to eligible employees bidding in the staff reservation section.

The proceeds from the fresh issue to the extent of Rs 200 crore will be used for sales and marketing initiatives; Rs 140 crore for investment in Blackbuck Finserve for funding to support the capital base to meet future capital requirements; Rs 75 crore to finance expenditure related to product development, and a portion will be used for general corporate purposes.

Zinka Logistics is dedicated to transforming the trucking industry in India by digitally empowering truckers to manage their businesses and grow their revenue. The company’s BlackBuck app serves as an end-to-end platform and provides solutions for payments, telematics, cargo management and vehicle financing.

The Bengaluru-based company processed a gross transaction value (GTV) of Rs 5,356.20 crore and Rs 17,396.19 crore in payments in the three months ended June 30, 2024 and fiscal year 2024, respectively. The payment platform handles significant expenses for truck operators, such as tolls and fuel.

The company partners with FASTag banks and several Oil Marketing Companies (OMCs) to offer efficient and secure tolling and refueling solutions that generate revenue through commission margins based on transaction values.

In the three months ended June 2024, the company’s income from continuing operations stood at Rs 92.17 crore with a profit after tax of Rs 28.67 crore.

Axis Capital, Morgan Stanley India Company, JM Financial and IIFL Capital Services are the book-run lead managers for the issue.