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The company, in consultation with the book-running lead manager, may consider a pre-IPO placement that shall not exceed 20 per cent of the size of the fresh issue.
Flipkart-backed Zinka Logistics Solutions Limited, the country’s leading digital platform for truck operators, has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
With a face value of Rs 1 per share, the IPO is a mix of fresh issuance of Rs 550 crore and an offer for sale of up to 21.61 million equity shares by promoters and Investor Selling Shareholders.
The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
The company, in consultation with the book-running lead manager, may consider a pre-IPO placement — which will not exceed 20 per cent of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The offer is being made through the book-building process, wherein not less than 75 per cent of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15 per cent of the offer shall be available for allocation to non-institutional bidders, and not more than 10 per cent of the offer shall be available for allocation to retail individual bidders.
The proceeds from its fresh issuance to the extent of Rs 200 crore will be used 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, and Rs 75 crore for funding of expenditure in relation to product development and general corporate purposes.
Through its BlackBuck app, Zinka Logistics is looking to transform the trucking industry in India by digitally empowering truck operators to manage their businesses and increase their earnings. The company’s app serves as a comprehensive platform, providing solutions for payments, telematics, load management, and vehicle financing.
As of March 31, 2024, Zinka Logistics had a significant presence, employing 1,783 permanent employees and engaging 3,638 contract workers.
By financial year 2024 (FY24), the company had grown its fleet to 963,345 truck operators, up from 482,446 in FY22, representing 27.52 per cent of India’s truck operators.
The company’s extensive reach is reflected in its network of 9,395 touchpoints across 628 districts, covering 80 per cent of India’s districts, including all major transportation hubs and 75 per cent of the toll plaza network. This vast network helps the company on-board and service customers efficiently.
Zinka Logistics processed a gross transaction value (GTV) of Rs 17,396.19 crore in payments for FY24.
Zinka Logistics also offers vehicle financing solutions, enabling truck operators to purchase used commercial vehicles or obtain financing on existing ones. By March 31, 2024, the company had facilitated 4,035 loans amounting to Rs 196.79 crore. Revenue from this segment is derived from loan service fees and other charges related to loan disbursal and collections.
Axis Capital Limited, Morgan Stanley India Company Limited, JM Financial Limited, and IIFL Securities Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
First Published: Jul 08 2024 | 3:39 PM IST
