Zinka Logistics Solutions Limited, known as the parent company of India’s leading digital trucking platform BlackBuck, has launched its initial public offering (IPO) for public subscription. The IPO began on November 13, 2024, and is open for investors until November 18, 2024. Despite the anticipated buzz around Zinka’s IPO, demand has been slightly subdued, with a moderate response from investors.
Subscription Status of Zinka Logistics IPO
As of November 14, 2024, the IPO has achieved a 32% subscription rate. According to data from the National Stock Exchange (NSE), the IPO received bids for about 72.15 lakh equity shares against the offered 2.25 crore shares. This moderate demand indicates that while retail investors are showing interest, other investor categories remain cautious. Here is an overview of the subscription status:
- Retail Investors: The retail portion has reached 90% subscription. Retail investors are showing the most interest in this IPO.
- Non-Institutional Investors (NII): Subscriptions are at 4% for this category, suggesting that larger individual investors are somewhat hesitant.
- Qualified Institutional Buyers (QIBs): QIBs have subscribed to about 26% of their allotted shares, reflecting a cautious but steady interest.
- Employee Quota: Shares reserved for employees have seen high demand, with a subscription rate of 5.32 times.
In the grey market, Zinka Logistics Solutions’ shares initially saw a premium of ₹24, but this has since dropped to zero. The current zero GMP indicates that grey market demand for these shares has cooled off, with no premium being offered above the IPO price. The IPO price range is set at ₹259 to ₹273 per share, and currently, the grey market reflects this price directly, with neither premium nor discount.
Zinka Logistics IPO Pricing and Details
Zinka’s IPO price range of ₹259 to ₹273 per share has set a target of ₹1,114.72 crore from the market. The offering consists of both a fresh issue and an offer-for-sale (OFS):
- Fresh Issue: This portion includes 2.01 crore shares and aims to raise approximately ₹550 crore.
- Offer-for-Sale (OFS): A total of 2.07 crore shares are being offered through the OFS, generating approximately ₹564.72 crore.
Funds raised through the fresh issue will be used to support Zinka’s growth initiatives. Key areas for fund allocation include boosting sales and marketing efforts, investing in the company’s Non-Banking Financial Company (NBFC) subsidiary, developing new products, and covering general corporate expenses.
Key Dates for Zinka Logistics IPO
Below are some important dates for investors considering the Zinka Logistics IPO:
- IPO Open Date: November 13, 2024
- IPO Close Date: November 18, 2024
- Share Allotment Date: November 19, 2024
- Listing Date on Stock Exchanges (BSE & NSE): November 21, 2024
The Zinka Logistics IPO provides investors with an opportunity to engage in India’s expanding logistics industry. However, deciding whether to invest depends on various factors, such as market sentiment, growth potential, and personal risk tolerance.
For those interested in the Indian logistics industry, Zinka Logistics IPO presents an opportunity to invest in a sector with growth potential. However, the mixed subscription response and the flat grey market premium suggest a cautious market sentiment. Investors are encouraged to analyze their financial goals and risk tolerance before making any decisions. This IPO may appeal to long-term investors who believe in India’s logistics sector growth, while others may wait to see the company’s performance after listing.
