Zinka Logistics Solutions closes 5% lower on debut despite strong equity market conditions

Zinka Logistics Solutions, BlackBuck

Zinka Logistics Solutions shares closed nearly 5 percent lower on its listing day of November 22, despite around 2.5 percent short covering-led rally in the benchmark indices.

The stock opened higher at Rs 280.90, up 2.9 percent over the issue price of Rs 273 and hit an intraday high of Rs 285.90 in early trade on the NSE, but immediately wiped out those gains and corrected up to Rs 255.35. Finally, it finished at Rs 260.05, down 4.74 percent with volume of 67.37 lakh equity shares.

On the BSE, the stock closed at Rs 260.20, down 4.69 percent compared to the issue price, with volume of 5.55 lakh equity shares.

The BlackBuck application operator's market capitalisation stood at Rs 4,592 crore at the closing price.

Zinka Logistics is India’s largest digital platform for truck operators, with 9.63 lakh truck operators in the country transacted on its platform - BlackBuck - in FY24, which was 27.52 percent of India’s truck operators. Its application provides payments, telematics, loads marketplace and vehicle financing services.

The Bengaluru-based company has raised Rs 1,114.7 crore through initial share sale of 4.08 crore equity shares at a price of Rs 273 per share. The IPO was a combination of fresh issue of equity shares worth Rs 550 crore, and an offer-for-sale of 2.06 crore shares worth Rs 564.7 crore.

The net fresh issue proceeds will be used for sales and marketing costs, the augmentation of NBFC subsidiary Blackbuck Finserve's capital base to meet its future capital requirements, product development, and general corporate purposes.

The price band for the book built issue was Rs 259-273 per share.