Zinka Logistics Solutions IPO: GMP, subscription status to review. Should you apply as bidding ends on Monday? | Stock Market News

Zinka Logistics Solutions IPO: The initial public offering (IPO) of Zinka Logistics Solutions Ltd has been witnessing subdued demand so far. The Zinka Logistics Solutions IPO opened for public subscription on November 13, and will close on November 18. Zinka Logistics Solutions IPO is India’s largest digital platform for truck operators in terms of number of users, which owns the BlackBuck App.

Zinka Logistics Solutions IPO will enter its third and the last day of bidding process on Monday, November 18. Ahead of the issue closing, let us check Zinka Logistics Solutions IPO GMP, subscription status, review and other key details.

Zinka Logistics Solutions IPO Subscription Status

Zinka Logistics Solutions IPO has been subscribed 32% so far on November 14, the second day of the bidding process. According to the NSE data, the public offer received bids for 72.15 lakh equity shares as against 2.25 crore shares on the offer.

The public issue received 90% subscription in the retail category and 4% subscription in the Non Institutional Investors (NII) category. The Qualified Institutional Buyers (QIBs) portion has been booked 26%, while the portion for Employees has been subscribed 5.32 times so far.

Zinka Logistics Solutions IPO GMP

Zinka Logistics Solutions shares are showing a muted trend in the unlisted market 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.

Zinka Logistics Solutions IPO: Should you apply?

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.

In terms of financial aspect, from being a loss making entity, company turned profitable in Q1FY25.

“At the upper price band company is valuing at Mcap/Sales of 16.2x on FY24 basis with a market cap of ₹48,178 million post issue of equity shares. On the valuation front, we believe that the company is fairly priced,” said brokerage firm Anand Rathi.

It recommends a “Subscribe – Long term” rating to the Zinka Logistics Solutions IPO.

The company’s total income grew at a CAGR of approximately 42.38% from FY22 to FY24.

“This strong growth indicates the company’s improved revenue generation capability, though it is still working toward eliminating its carried-forward losses, as seen by the recent progress in Q1 FY25 with a net profit of ₹32.38 crore. Attributing the annualized FY25 earnings to the post-IPO fully diluted equity base results in a P/E of 37.19, which is reasonable for a tech company. However, based on FY24 earnings, the P/E remains negative, indicating the issue appears aggressively priced,” said Canara Bank Securities.

Given BlackBuck’s strong market position, scalable asset-light model, and high growth potential, it is recommended as a favorable investment in the logistics tech sector. However, the company should be monitored closely for regulatory changes and competitive pressures that could impact its profitability and market share, it added.

The brokerage firm recommends to subscribe Zinka Logistics Solutions IPO for long-term gains.

Zinka Logistics Solutions IPO Details

Zinka Logistics Solutions IPO opened for public subscription on Wednesday, November 13, and will close on Monday, November 18. The IPO allotment is expected to be finalized on November 19, and the IPO listing date is likely November 21. Zinka Logistics Solutions shares will be listed on both the stock exchanges, BSE and NSE.

Zinka Logistics Solutions IPO price band has been set at ₹259 to ₹273 per share. At the upper-end of the price band, the company plans to raise ₹1,114.72 crore from the book-built issue which is 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.

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.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.