Zinka Logistics Solution IPO: What GMP signals ahead of share listing date

Zinka Logistics Solutions IPO: The initial public offering (IPO) of Zinka Logistics Solutions Ltd saw decent demand during its bidding period and the IPO allotment has also been finalised. Applicants now await Zinka Logistics Solution IPO listing, which is expected to be scheduled tomorrow.

Zinka Logistics Solutions IPO listing date is likely November 22, Friday. The IPO was open for subscription from November 13 to 18 and Zinka Logistics Solutions IPO allotment was fixed on November 20.

“Trading members of the Exchange are hereby informed that the equity shares of ZINKA LOGISTICS SOLUTIONS LIMITED shall be listed and admitted to dealings on the Exchange in due course,” a notice on BSE said.

Ahead of Zinka Logistics Solutions share listing, investors look at the trends in the grey market premium for the stock in order to gauge the listing price. Let us check what Zinka Logistics Solutions IPO GMP today indicates about the share listing price.

Zinka Logistics Solutions IPO GMP Today

The trends for Zinka Logistics Solutions shares in the unlisted market remains muted with a subdued grey market premium (GMP) today. According to stock market observers, Zinka Logistics Solutions IPO GMP today is ₹0 per share. This indicates that in the grey market, Zinka Logistics Solutions shares are trading at par with their IPO price at ₹273 apiece, which means without any premium or discount to the issue price.

Considering the Zinka Logistics Solutions IPO GMP today, the estimated listing price of Zinka Logistics Solutions shares would be ₹273 per share, which is equal to the issue price of ₹273 per share.

Sagar Shetty, Research Analyst, StoxBox noted that Zinka Logistics Solutions shares are set to get listed tomorrow at the bourses and are expected to open at par with its upper band price.

“The muted opening could likely be attributed to the weak market sentiments and the company’s high valuation concern. However, given the company’s strong market presence and industry tailwinds, it provides a good medium- to long-term opportunity. Overall, we believe that participants who have been allotted the shares hold it from a medium to long-term horizon, given the company’s robust growth potential,” Shetty said.

Zinka Logistics Solutions IPO Details

The bidding for Zinka Logistics Solutions IPO began on Wednesday, November 13, and ended on Monday, November 18. The IPO allotment was finalized on November 20, and Zinka Logistics Solutions IPO listing date is November 22. Zinka Logistics Solutions shares will be listed on both the stock exchanges, BSE and NSE.

The company raised ₹1,114.72 crore from the book-built at the IPO price band of ₹259 to ₹273 per share. Zinka Logistics Solutions IPO comprised a combination of fresh issue of 2.01 crore equity shares worth ₹550 crore and an offer-for-sale (OFS) of 2.07 crore shares amounting to ₹564.72 crore.

Zinka Logistics Solutions IPO received 1.86 times subscription in total as it attracted bids for over 4.19 crore equity shares as against 2.25 crore shares on the offer, as per NSE data. The public issue was subscribed 1.66 times in the Retail Investors’ category and 2.76 times in the Qualified Institutional Buyers (QIB) category.

The portion for Non Institutional Investors (NII) was booked 0.24 times and that for its Employees was subscribed 9.88 times.

The company plans to utilse the net issue proceeds for funding towards sales and marketing costs, investment in its NBFC subsidiary, funding of expenditure about product development and general corporate purposes.

Axis Capital, Morgan Stanley India Company, JM Financial and IIFL Securities are the book running lead managers of the Zinka Logistics Solutions IPO, while Kfin Technologies is the IPO registrar.

Zinka Logistics Solutions Ltd is India’s largest digital platform for truck operators in terms of number of users, with 963,345 truck operators in the country transacting on its platform in FY24, which comprises 27.52% of India’s truck operators. The company’s total income grew at a CAGR of approximately 42.38% from FY22 to FY24.

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