Zinka Logistics Solutions IPO to open on November 13, institutional investors buy Rs 501 crore in shares via anchor book

Zinka Logistics Solutions Blackbuck

Zinka Logistics Solutions, which offers digital platform BlackBuck for truck operators, has raised Rs 501.33 crore from institutional investors via anchor book on November 12. This fund raising was ahead of the IPO opening for subscription scheduled on November 13.

The Bengaluru-based company intends to mop up Rs 1,114.72 crore through its initial share sale, at the upper end of price band that has been fixed at Rs 259-273 per share. The IPO is a mix of fresh issue of Rs 550 crore worth shares, and an offer-for-sale of 2.06 crore shares worth Rs 564.72 crore.

"... has finalised allocation of 1,83,63,915 equity shares to anchor investors at a price of Rs 273 per share," the Flipkart-backed company said in its filing to exchanges.

Marquee institutional investors acquired shares in the company via anchor book are Nomura, Hornbill Orchid India Fund, Steadview Capital Mauritius, TIMF Holdings, Florida Retirement System, Massachusetts Institute of Technology, Carmignac Portfolio, BNP Paribas Funds, Pinebridge Global Funds, and Societe Generale.

Additionally, SBI Mutual Fund, Invesco India, Bandhan Mutual Fund, ICICI Prudential Life Insurance, Ashoka Whiteoak, SBI General Insurance, and Nuvama Multi Asset Strategy Return Fund among domestic institutional investors also invested in Zinka.

"Out of the total allocation of 1.83 crore equity shares to the anchor investors, 61.39 lakh shares were allocated to 3 domestic mutual funds through a total of 6 schemes," Zinka Logistics said.

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The BlackBuck application of the company offers payments, telematics, loads marketplace and vehicle financing services. More than 9.63 lakh truck operators transacted on its platform in FY24, which comprises 27.52 percent of India’s truck operators, increasing from 7.61 lakh truck operators in FY23, and 4.82 lakh truck operators in FY22,

Promoters and founders Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam; and investors Quickroutes International (earlier known as Flipkart Logistics), Accel India, International Finance Corporation, Internet Fund, Peak XV Partners Investments, VEF AB (publ), and Sands Capital are the selling shareholders in the offer-for-sale of Zinka Logistics Solutions IPO.

The company will spend Rs 415 crore out of the net fresh issue proceeds for sales and marketing costs, financing the augmentation of NBFC subsidiary Blackbuck Finserve's capital base to meet its future capital requirements, and product development. And the remainder fresh issue money will be utilised for general corporate purposes.

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The maiden public issue will close on November 18, while its equity shares will be available for trading on the BSE and NSE effective November 22.

The merchant bankers working for the public issue are Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Capital Services.