Zinka Logistics Solutions Limited’s Initial Public Offering to open on Wednesday,
November 13, 2024, price band set at ₹259/- to ₹273/- per Equity Share
Mumbai, November 08,
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 ₹259/- to ₹273/- per Equity Share of face value ₹1/- 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.
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 ₹5,356.20 crore and ₹17,396.19
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 ₹296.92 crore in Fiscal 2024
from ₹175.68 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 ₹92.17 crore and Profit after tax stood at ₹28.67 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.
Notes for
Reference:
Issue Size of the
IPO based on the upper and lower end of the price band
|
|
Fresh |
OFS (20,685,800 equity shares) |
Total |
|
Lower Band (@Rs 259) |
Rs 550 crore |
Rs 535.76 crore |
Rs 1,085.76 crore |
|
Upper Band (@Rs 273) |
Rs 550 crore |
Rs 564.72 crore |
Rs 1,114.72 crore |
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