Zinka Logistics Solutions IPO: The initial public offering (IPO) of Zinka Logistics Solutions Ltd has seen muted 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 by number of users, owning BlackBuck App.

Zinka Logistics Solutions’ IPO will enter its third and final day of bidding on Monday, November 18. Before the issue closes, let’s check Zinka Logistics Solutions IPO GMPsubscription status, review and other important details.

Zinka Logistics Solutions IPO Subscription Status

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

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

Zinka Logistics Solutions IPO GMP

Zinka Logistics Solutions shares are showing a muted trend in the over-the-counter market with a muted gray market premium (GMP) today. According to stock market observers, Zinka Logistics Solutions IPO is GMP today ₹0 per share. This indicates that on the gray market, Zinka Logistics Solutions’ share is traded at par with the IPO price ₹273 each, which means without any premium or discount on the issue price.

Zinka Logistics Solutions IPO: Should you apply?

Zinka Logistics Solutions Ltd is India’s largest digital platform for truck operators by number of users, with 963,345 truck operators in the country transacting on its platform in FY24, representing 27.52% of India’s truck operators.

On the financial front, from being a loss-making entity, the company turned profitable in Q1FY25.

“At the upper price range, the company values ​​at Mcap/Sales of 16.2x on FY24 basis with a market capitalization of ₹48,178 million after the issue of shares. On the valuation front, we believe the company has a reasonable price, says brokerage firm Anand Rathi.

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

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

“This strong growth indicates the company’s improved ability to generate revenue, although it is still working to eliminate its carry-forward losses, as evidenced by the recent progress in Q1 FY25 with a net profit of ₹SEK 32.38 million. Attributing FY25 earnings to the fully diluted post-IPO share base results in a P/E of 37.19, which is reasonable for a technology company. However, based on FY24 earnings, the P/E remains negative, indicating that the issue appears aggressively priced, Canara Bank Securities said.

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

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

Zinka Logistics Solutions IPO Details

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

Zinka Logistics Solutions IPO price bands have been set ₹259 more ₹273 per share. In the upper part of the price band, the company plans to increase ₹1,114.72 crore from the book-build issue which is a combination of fresh issue of 2.01 crore shares worth ₹550 crore and an offer-for-sale (OFS) of 2.07 crore shares equivalent ₹SEK 564.72 million.

The company plans to use the net issue proceeds for financing sales and marketing expenses, investments in its NBFC subsidiaries, financing product development expenses and general corporate purposes.

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

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