Zinka Logistics Solution IPO: From financials to GMP, here are 10 things to know from the RHP, before investing

Stock Market Today: Zinka Logistics Solution IPO , the ₹1,114.72 crore issue opens on 13 November. Here are 10 things to know from the RHP, before investing.

1. Zinka Logistics Solution IPO: Key dates

The Zinka Logistics initial public offering (IPO) subscription period begins on November 13, 2024, and ends on November 18, 2024. On Tuesday, November 19, 2024, the allocation for the Zinka Logistics IPO is anticipated to be finalized. The proposed listing date for Zinka Logistics’ initial public offering (IPO) is set for Thursday, November 21, 2024, on the BSE and NSE.

2. Zinka Logistics Solution IPO size-

The Zinka Logistics Solution IPO is a ₹1,114.72 crore book-built offering. The issuance consists of an offer to sell 2.07 crore shares for a total of ₹564.72 crores and a new issue of 2.01 crore shares worth ₹550.00 crores.

3, Zinka Logistics Solution- Subscription details:

The price band or price range for Zinka Logistics’ IPO is between ₹259 and ₹273 per share. Since 54 shares is the minimum lot size required for an application, Retail investors must make a minimum investment of ₹14,742. The minimum lot size investment for big NII is 68 lots (3,672 shares), which is equivalent to ₹1,002,456, and for small NII, it is 14 lots (756 shares), which is equivalent to ₹206,388.

4. Zinka Logistics Solution- Objects of the issue

Zinka Logistics plans to use the proceeds of the IPO for

Funding for marketing and sales expenses

Investment in its NBFC subsidiary, Blackbuck Finserve Private Limited, to finance the expansion of its capital base in order to satisfy its future capital needs;

Financing of product development expenses as well as

For general Corporate purposes.

5. About Zinka Logistics Solution Limited

Zinka Logistics Solution Limited was established in April 2015 and provides truck drivers with a digital platform called the BlackBuck app. 963,345 truck operators nationwide, or 27.52% of all truck operators in India, used the platform to do business during the fiscal year 2024.

The BlackBuck app from Zinka Logistics Solution is a platform that helps truck drivers accomplish their objectives effectively by providing telematics, payments, a freight marketplace, and auto financing options.

6. Zinka Logistics Solution -Promoters

The Promoters of the company are Rajesh Kumar Naidu Yabaji, Chanakya Hridaya and Ramasubramanian Balasubramaniam

7. Zinka Logistics Solution- Financials

Zinka Logistics Solution Limited’s revenue increased by 62.24% year on year and Net profit rose by 33.24% during FY24 over FY23

8. Zinka Logistics Solutions- Lead Managers and Registrar

The BZinca Logistics IPO’s book running lead managers are Axis Capital Limited, Morgan Stanley India Company Pvt Ltd, Jm Financial Limited, and IIIFL Securities Ltd. Kfin Technologies Limited is the issue’s registrar.

9. Zinka Logistics Solutions- Key risks

According to the company’s RHP, a sizable amount of its vehicle tracking solutions are sourced from a few main providers. The business of the company could suffer if the connection were to end.

Its finance business exposes it to a number of risks that could negatively impact its operations, including high-risk borrowers and collateral recovery.

10. Zinka Logistics Solutions GMP or Grey Market Premium

Zinka Logistics Solutions Grey market premium or the GMP is ₹24. It means that Zinka Logistics Solutions shares are available in the grey market at RS 24 higher than the upper price band of the issue size.

It also means that investors are expecting Zinka Logistics Solutions shares to list at ₹297, which is 8.97% premium over the issue price of ₹273.

The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.