Zinka Logistics Solutions Filed DRHP with SEBI: Know More About Upcoming IPO

• Zinka Logistics is a parent entity of logistics unicorn Blackbuck 
• Zinka Logistics Solutions is a Transportation firm
• The company is looking for a Rs 550 Crore of Fresh issue
• Promoters of the company are offering up to 21,609,022 equity shares for sale

Zinka Logistics Solutions, a parent company of blackbuck submits DRHP with SEBI and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 550 Crore of equity shares and an offer for sale worth up to 21,609,022 equity shares. The face value reported as Re 1 each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. The opening date and closing date of this ipo is not yet disclosed, as well as price band will be announced soon by the firm.

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About Zinka Logistics Solutions Private Limited

Zinka Logistics Solutions Private Limited is India’s largest digital platform for truck operators, with 963,345 truck operators using the platform in Fiscal 2024, representing 27.52% of India's truck operators (Source: Redseer Report). Through the BlackBuck mobile application, operators manage tolling and fueling payments, monitor drivers and fleets with telematics, find loads on the marketplace, and access financing for used vehicle purchases.

In Fiscal 2024, Zinka processed Rs 17396.19 crore in payments, had 356,050 average monthly active telematics devices, and facilitated 2.12 million load postings. Their network spans 628 districts with 9,395 touchpoints, providing essential service infrastructure and building trust with customers.

Zinka Logistics Solutions Private Limited IPO Objectives

The company mentioned in the DRHP that they plan to utilize the Net Proceeds for various strategic purposes. These include ₹200 crore towards sales and marketing costs, ₹140 crore in investment in Blackbuck Finserve Private Limited to augment its capital base for future requirements, and ₹75 crore for product development expenditures. The further allocation will be for general corporate purposes - The amount utilised for general corporate purposes shall not exceed 25% of the Gross Proceeds (As per DRHP).

Financials of the Company

For the FY year ended March 2024, compared to March 2023, the company's assets increased by 0.01% to Rs 654.32 Crore. However, revenue increased by 69.01% to Rs 296.92 crore, and profit after tax showed a continuous negative from Rs -290.50 crore to Rs -193.95 crore for the same period. Total borrowings increased to Rs 173.74 crore from Rs 165.84 crore as compared to FY24 from FY23. These numbers show how the company's finances have been and where exactly there is a need to make strategic changes.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by Axis Capital Limited, Morgan Stanley India Company Private Limited, JM Financial Limited and IIFL Securities Limited. The company has appointed KFin Technologies Limited as the registrar for the issue, while the company has Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian, Balasubramaniam as their promoter(s).

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