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Zinka Logistics Solutions IPO: Things Smart Investors Follow

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Zinka Logistics Solutions Limited, also known for its digital platform "BlackBuck," focuses on connecting truck operators with various essential services. Founded in April 2015, the company has grown into India's largest digital platform for truck operators. Offering services like payments, telematics, freight marketplaces, and vehicle financing, it helps truck operators optimize their operations.

Core Business and Market Position

The core strength of Zinka lies in its ability to address market gaps for truck operators. With a customer base of over 963,345 truck operators by fiscal year 2024, Zinka accounts for a significant share of Indian truck operators. The company's services cater to a diverse range of logistics and operational needs, making it a key player in the market.

Zinka Logistics IPO Details and Objectives

Category

Details

IPO Opening Date

November 13, 2024

IPO Closing Date

November 18, 2024

Price Band

₹259 - ₹273 per share

Minimum Lot Size

54 shares

Listing Exchange

BSE, NSE

The IPO comprises a fresh issue of 2.01 crore shares worth ₹550 crores and an offer for sale of 2.07 crore shares totaling ₹564.72 crores.

Purpose of the IPO

  • Fund sales and marketing initiatives
  • Investment in Blackbuck Finserve Private Limited (NBFC subsidiary)
  • Product development expenditure
  • General corporate purposes

Timeline of Zinka Logistics Solutions IPO

Event

Date

IPO Open Date

November 13, 2024

IPO Close Date

November 18, 2024

Basis of Allotment

November 19, 2024

Initiation of Refunds

November 20, 2024

Credit of Shares to Demat

November 20, 2024

Listing Date

November 21, 2024

Cut-off Time for UPI Mandate Confirmation

5 PM on November 18, 2024

Pricing & Lot Size of Zinka Logistics IPO

  • Price Band for the IPO: ₹259 - ₹273 per share
  • Minimum Lot Size and Application Details:
    • Minimum investment of ₹14,742 for retail investors (54 shares)
    • Higher allotment options available for sNII and bNII categories

How to Apply for the Zinka Logistics IPO?

  • Online Application Process:
    • Visit Bajaj Broking trading app or website.
    • Log in to your Demat account.
    • Navigate to the IPO section and select 'Zinka Logistics Solutions IPO'.
    • Enter the lot size and bidding price.
    • Complete the UPI mandate for payment confirmation or use the ASBA (Application Supported by Blocked Amount) process through your bank.

Financial Health and Performance

  • Key Financial Metrics:
    • Revenue (FY24): ₹316.51 Cr
    • Profit After Tax (PAT) for FY24: ₹-193.95 Cr
    • Total Assets (FY24): ₹654.32 Cr
    • Net Worth as of FY24: ₹311.29 Cr
    • Reserves & Surplus (FY24): ₹311.03 Cr
    • Total Borrowing (FY24): ₹173.74 Cr
  • Recent Performance and Growth Prospects:
    • Achieved a revenue increase of 62.24% from FY23 to FY24.
    • Recorded a reduction in losses, showcasing progress in profitability.
    • Growing adoption of its logistics platform, contributing to revenue growth.
    • Expansion in digital logistics solutions for truck operators across multiple states.
    • Optimistic outlook driven by innovative offerings, customer expansion, and strategic positioning in the logistics market.

Investment Risks and Opportunities

  • Potential Risks of Investing in the IPO:
    • History of net losses in previous fiscal years
    • High dependence on market conditions and competition
  • Opportunities and Growth Potential:
    • Rapidly expanding logistics market in India
    • Strong digital platform for truck operators

Key Performance Indicator (KPI)

Metric

Value

ROE (Return on Equity)

9.39%

ROCE (Return on Capital Employed)

1.50%

Debt/Equity Ratio

0.47

RoNW (Return on Net Worth)

9.39%

P/BV (Price to Book Value)

14.6

Zinka Logistics Solutions IPO Registrar & Lead Managers

Registrar

Details

Kfin Technologies Ltd

Contact: 040-67162222

 

Email: zinka.ipo@kfintech.com

Company Address of Zinka Logistics Solutions Ltd

  • Address: Vaswani Presidio, no. 84/2, II Floor, Panathur Main Road, Kadubeesanahalli, Bengaluru 560103
  • Phone: +91 8046481828
  • Email: cs@blackbuck.com

Conclusion

Zinka Logistics Solutions' IPO offers an opportunity to invest in a fast-evolving logistics platform with a strong market presence. While the IPO carries inherent risks, potential investors may find value in the company’s innovative solutions and growth potential.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

Who is the CEO of Zinka Logistics Solutions Ltd?

Answer Field

The CEO of Zinka Logistics Solutions Ltd is Rajesh Kumar Naidu Yabaji.

When will the Zinka Logistics Solutions IPO open for subscription?

Answer Field

The Zinka Logistics Solutions IPO will open on November 13, 2024.

What is the price band for the Zinka Logistics IPO, and how was it determined?

Answer Field

The price band is ₹259 to ₹273, determined based on market demand and valuation metrics.

What are the key risks and rewards of investing in the Zinka Logistics Solutions IPO?

Answer Field
Key risks include historical losses, while potential rewards are tied to growth in India’s digital logistics market.

What documents should I review before investing in the Zinka Logistics Solutions IPO?

Answer Field

Review the Draft Red Herring Prospectus (DRHP) and financial statements before investing.

What are the lock-up period details for the Zinka Logistics IPO?

Answer Field

Information not available.

Will Zinka Logistics Solutions IPO pay dividends?

Answer Field

Dividend payouts, if any, will depend on the company's future profitability and board decisions.

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