IPO Price Band of India’s largest digital platform for truck operators' Set At Rs259 To Rs273 Per Equity Share
FinTech BizNews Service
Mumbai, November 8, 2024: Zinka Logistics Solutions Limited, India’s largest digital platform for
truck operators (in terms of number of users), with 963,345 truck operators in the country transacting
on our platform in Fiscal 2024, which comprises 27.52% of India’s truck operators, has fixed the price
band of Rs259/- to Rs273/- per Equity Share of face value Rs1/- each for its maiden initial public offer.
The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Wednesday, November
13, 2024, for subscription and close on Monday, November 18, 2024. Investors can bid for a
minimum of 54 Equity Shares and in multiples of 54 Equity Shares thereafter.
The IPO is a mix of fresh issue of up to Rs 550 crore and an offer of sale up to 20,685,800 equity
shares by Promoters and Investors Selling Shareholders. A discount of Rs 25 per equity share is being
offered to eligible employees bidding in the employee reservation portion.
The proceeds from its fresh issuance will be utilized to the extent of Rs 200 crore for funding towards
sales and marketing costs, Rs 140 crore for investment in Blackbuck Finserve Private Limited for
financing the augmentation of its capital base to meet its future capital requirements, Rs 75 crore
for funding of expenditure in relation to product development, and general corporate purposes.
Zinka Logistics is dedicated to transforming the trucking industry in India by digitally empowering
truck operators to manage their businesses and increase their earnings. The company’s innovative
BlackBuck app serves as a comprehensive platform, providing solutions for payments, telematics,
load management, and vehicle financing.
As of June 30, 2024, Zinka Logistics had a significant presence, employing 1,849 permanent
employees and engaging 3,688 contract workers. By Fiscal 2024, the company had grown its fleet to
963,345 truck operators, up from 482,446 in Fiscal 2022, representing 27.52% of India’s truck
operators. The company's extensive reach is reflected in its network of 9,374 touchpoints (as of June
30,2024), covering 80% of India's districts, including all major transportation hubs and 76% of the toll
plaza network. This extensive network helps the company onboard and service customers efficiently.
Zinka Logistics processed a gross transaction value (GTV) of Rs5,356.20 crore and Rs17,396.19 crore in
payments in the three months ended June 30, 2024 and Fiscal 2024. The payments platform addresses
significant expenses for truck operators, such as tolls and fuel. The company partners with FASTag
banks and multiple oil marketing companies (OMCs) to offer efficient and secure tolling and fueling
solutions, generating revenue through commission margins based on transaction values.
As of and for the three months period ended June 30, 2024, Zinka Logistics had 310,989 monthly
transacting users utilizing at least two services, facilitating over 128.31 million transactions. This
reflects the company's success in providing integrated solutions that cater to various needs of truck
operators, enhancing their business operations and profitability.
Zinka Logistics' consolidated revenue from continuing operations increased by 69.01% to Rs296.92
crore in Fiscal 2024 from Rs175.68 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.
For the three months ended June 30, 2024, revenue from continuing operations stood at Rs92.17 crore
and Profit after tax stood at Rs28.67 crore.
Axis Capital Limited, Morgan Stanley India Company Private Limited, JM Financial Limited, and IIFL
Capital Services Limited are the book-running lead managers and KFin Technologies Limited is the
registrar of the offer.
The offer is being made through the book-building process, wherein not less than 75% of the net offer
shall be available for allocation on a proportionate basis to qualified institutional buyers, not more
than 15% of the net offer shall be available for allocation to non-institutional investors, and not more
than 10% of the net offer shall be available for allocation to retail individual investors.
