BlackBuck listing on Nov 22: Tiger Global, Accel, other early investors may see up to 5x return

The company's BlackBuck app serves as a comprehensive platform, providing solutions for payments, telematics, load management and vehicle financing.

Shares of Zinka Logistics Solutions, a digital platform for truck operators, are set to list on the stock exchanges on November 22, assuring substantial returns for its early investors.  They stand to see whopping gains of up to five times their initial investments.

The Rs 1,115-crore IPO, which opened for subscription between November 13 to 18, was subscribed 1.86 times. The issue comprised a fresh issue of shares worth Rs 550 crore and an offer-for-sale (OFS) of up to 2.06 crore shares, with the OFS component valued at Rs 565 crore at the upper price band.

The company's BlackBuck app serves as a comprehensive platform, providing solutions for payments, telematics, load management and vehicle financing.

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.

The IPO was priced in the range of Rs 259-273 per share. At the upper price band of Rs 273, early investors stand to see gains of up to 5x, based on their acquisition costs shown in the company’s red herring prospectus (RHP).

Zinka's early investors include Quickroutes International Private Limited, which invested in 2015 at an average acquisition cost of Rs 52.04 per share. Other notable investors are Accel India (Rs 62.71 in 2015), Sands Capital (Rs 132.09), Internet Fund Pte (Rs 69.07), and Peak XV (Rs 308.98 in 2018). Here is how much early investors are set to gain:

Zinka Logistics IPO allotment status: How to check details online via registrar, BSE

Earlier, the company mobilised over Rs 501 crore from anchor investors.

Proceeds from the fresh issuance to the extent of Rs 200 crore will be used for sales and marketing initiatives; Rs 140 crore for investment in Blackbuck Finserve for financing the supporting the capital base to meet future capital requirements; Rs 75 crore for funding of expenditure in relation to product development, and a portion will be used for general corporate purposes.

Zinka Logistics said it is "dedicated to transforming the trucking industry in India by digitally empowering truck operators to manage their businesses and increase their earnings".

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