Flipkart-backed Zinka Logistics Solutions, the company behind the popular trucking app BlackBuck, has taken a big step towards going public. The company based in Bengaluru has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). This is the first step towards an Initial Public Offering (IPO), which is a way for companies to raise money by selling shares to the public.
Zinka Logistics is a company that is working to improve the Indian trucking industry. They aim to achieve this by providing truck owners with digital tools that can help them manage their businesses more effectively and increase their profits. Their main product is the BlackBuck app, which functions as an all-in-one platform for truckers.
The details of the Zinka Logistics IPO are still being finalized, but the company has said that it will be a combination of a fresh issue of shares and an offer for sale (OFS) by existing investors. The fresh issue of shares will raise ₹550 crore (approximately $70 million) for the company. The OFS will allow existing investors, such as Flipkart, to sell some of their shares in the company.
The decision by Zinka Logistics to go public is a sign of confidence in the Indian trucking industry. The company’s success with the BlackBuck app shows that there is a demand for digital solutions in this sector. An IPO could help Zinka Logistics to raise the capital it needs to expand its services and reach more truck owners. This could ultimately lead to a more efficient and profitable trucking industry in India.
Now that Zinka Logistics has filed its DRHP with SEBI, the regulator will review the document and may ask for changes before approving the IPO. Once the DRHP is approved, Zinka Logistics can start marketing the IPO to potential investors. The company is expected to go public sometime in the current financial year (2024-25).