The initial share sale of Zinka Logistics Solutions continued to see muted response from investors even on the second day of bidding i.e. November 14, as nervousness in the equity markets seemed to be impacting subscription numbers. The benchmark indices fell around 2.5 percent for the current week, taking the total loss to over 10 percent from their record highs of September 27.
The public issue was subscribed 32 percent with investors buying 72.19 lakh equity shares against the offer size of 2.25 crore shares, subscription data on the exchanges showed.
Retail investors remained at the leading position, subscribing 90 percent shares of their reserved portion, followed by qualified institutional buyers and non-institutional investors who bought 26 percent and 4 percent shares of their allotted quotas. The part set aside for employees saw strong subscription of 5.33 times.
Zinka Logistics Solutions that offers BlackBuck platform for truck operators targets to raise Rs 1,114.72 crore through its maiden public issue at the upper end of price band of Rs 259-273 per share. The IPO is a mix of fresh issuance of equity shares worth Rs 550 crore, and an offfer-for-sale of 2.06 crore shares worth Rs 564.72 crore. Peak XV Partners Investment, International Finance Corporation, Quickroutes International, and Accel India are amongst the selling shareholders in the offer-for-sale.
The Bengaluru-based company already mopped up Rs 501 crore through its anchor book on November 12.
The fresh issue money will be utilised towards sales and marketing costs, and product development. It will also be invested in Blackbuck Finserve, the NBFC subsidiary of the company, for financing the augmentation of its capital base to meet future capital requirements, and the remainder funds will be used for general corporate purposes.
Zinka is India’s largest digital platform for truck operators (in terms of number of users), with 9.6 lakh truck operators transacted on its platform in FY24, which comprises 27.52 percent of country's truck operators.
Meanwhile, Zinka Logistics Solutions IPO shares are not getting any trading premium in the grey market, may be due to subdued market conditions, said market observers. The grey market is an unofficial market wherein the IPO shares can be bought and sold till the listing.
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