Accel and Flipkart-backed Zinka Logistics Solutions Files DRHP For IPO
The IPO is a mix of fresh issuance of Rs 550 crore and an offer for sale (OFS) of up to 21.61 million equity shares
Bengaluru-based Zinka Logistics Solutions, a digital platform for truck operators in fiscal 2024, filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (Sebi) to mop up funds through an initial public offering (IPO).
Bengaluru-based Zinka Logistics Solutions, a digital platform for truck operators in fiscal 2024, filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (Sebi) to mop up funds through an initial public offering (IPO).
The IPO, with a face value of Rs 1 each, is a mix of fresh issuance of Rs 550 crore and an offer for sale (OFS) of up to 21.61 million equity shares by promoters and investor selling shareholders.
The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Securities are the book-running lead managers and KFin Technologies the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
IPO Objectives
The proceeds from its fresh issuance to the extent of Rs 200 crore will be utilised for funding towards sales and marketing costs, Rs 140 crore for investment in Blackbuck Finserve Private for financing the augmentation of its capital base to meet its future capital requirements, and Rs 75 crore for funding of expenditure in relation to product development and general corporate purposes.
Firm’s Performance
Zinka Logistics caters to the trucking industry in India by digitally empowering truck operators to manage their businesses and increase their earnings. The company’s BlackBuck app serves as a platform, providing solutions for payments, telematics, load management, and vehicle financing.
Zinka Logistics processed a gross transaction value (GTV) of Rs 17,396.19 crore in payments for Fiscal 2024. Additionally, Zinka Logistics offers vehicle financing solutions, enabling truck operators to purchase used commercial vehicles or obtain financing on existing ones.
Financials
Zinka Logistics' consolidated revenue from continuing operations increased by 69.01 per cent to Rs 296.92 crore in Fiscal 2024 from Rs 175.68 crore in Fiscal 2023, primarily due to an increase in its average monthly transacting truck operators, which led to an increase in its commission income, subscription fees, and service fees.
