The BlackBuck IPO, also known as Zinka Logistics Solution Limited IPO, is set to raise ₹1,114.72 crores through fresh issues and an Offer for Sale (OFS). This IPO, priced between ₹259 and ₹273 per share, will open for subscription on November 13, 2024, and close on November 18, 2024. With BlackBuck’s leading digital platform that connects truck operators and shippers, the IPO has attracted attention for its potential to empower India’s logistics industry.
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Founded in 2015 and headquartered in Bengaluru, Zinka Logistics Solution Ltd., known as BlackBuck, is a platform focused on digitizing India’s trucking industry. Through the BlackBuck app, truck operators can access efficient order creation, telematics, vehicle financing, and payments. In FY2024, approximately 963,345 truck operators used the platform, making up 27.52% of India’s truck operators.
Overview of Contents
Blackbuck IPO Overview
| Parameter | Value |
|---|---|
| IPO Size | ₹1,114.72 crores |
| Fresh Issue | 2.01 crore shares aggregating ₹550 crores |
| Offer for Sale | 2.07 crore shares aggregating ₹564.72 crores |
| IPO Price Band | ₹259 to ₹273 per share |
| Market Lot | 54 shares per lot |
| Listing Date | Expected on November 21, 2024 on BSE and NSE |
| IPO Open Date | November 13, 2024 |
| IPO Close Date | November 18, 2024 |
| Price Band | ₹259 to ₹273 per share |
| Lot Size | 54 shares |
| Minimum Investment (Retail) | ₹14,742 |
The BlackBuck IPO will be listed on the BSE and NSE with a tentative listing date of November 21, 2024. This IPO offers retail investors, high net-worth individuals (HNIs), and employees an opportunity to participate, with an additional 26,000 shares reserved for employees at a discounted price.
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BlackBuck IPO GMP (Grey Market Premium)
As the IPO approaches, investors are curious about the BlackBuck IPO GMP (Grey Market Premium), which can indicate potential listing gains or market enthusiasm. Keep an eye on the GMP updates as they may fluctuate closer to the listing date.
BlackBuck IPO Allotment and Listing Date
- Allotment Date: November 19, 2024
- Listing Date: Expected on November 21, 2024
Investment Requirements for BlackBuck IPO
For investors, the minimum investment varies based on category:
- Retail Investors: Minimum 54 shares, amounting to ₹14,742
- sNII (Small Non-Institutional Investors): Minimum 756 shares (14 lots), amounting to ₹206,388
- bNII (Big Non-Institutional Investors): Minimum 3,672 shares (68 lots), amounting to ₹1,002,456
How to Apply for BlackBuck IPO
- Step 1: Select the BlackBuck IPO on your broker’s platform (through UPI for retail investors or ASBA for banks). (We Highly Recommended Zerodha Free Demat account)
- Step 2: Enter the quantity and price within the provided price band of ₹259 to ₹273.
- Step 3: Confirm and Submit your application.
- Step 4: Check the allotment status once announced on November 19, 2024, through the registrar’s website or broker’s platform.
Financial Performance and Growth Potential of BlackBuck
Founded in 2015 and based in Bengaluru, BlackBuck offers a range of services to truck operators and shippers. As of March 2024, BlackBuck’s Gross Transaction Value (GTV) for payments stood at ₹173,961.93 million, showing significant traction within India’s trucking community.
- Revenue Growth: 62% increase compared to the previous year
- Q1 FY25 Turnaround: First quarter profitability with ₹32.38 crores net profit, marking a shift from past fiscal losses
BlackBuck Business Model and Offerings
The BlackBuck App provides a one-stop platform for truck operators, addressing their logistical needs by offering telematics, vehicle financing, toll and fuel payments, and a freight marketplace. Key features include:
- Payments: BlackBuck manages tolling and fueling payments digitally, helping reduce costs.
- Telematics: Truck operators can monitor driver performance, fuel usage, and overall fleet management.
- Freight Marketplace: BlackBuck helps truck operators locate loads, optimize routes, and reduce empty trips.
- Vehicle Financing: BlackBuck’s financing service enables truck operators to purchase used commercial vehicles, assisting them in expanding their business.
Pros and Cons of Investing in BlackBuck IPO
Pros:
- Market Leader: BlackBuck holds a significant market share, with 27.52% of India’s truck operators utilizing its services.
- Growing Digital Influence: BlackBuck’s model addresses core inefficiencies in the logistics market by digitalizing payments, load management, and vehicle monitoring.
- Revenue Potential: The increase in revenue and shift toward profitability indicate strong growth potential.
Cons:
- Aggressive Pricing: Based on FY25 earnings, the IPO appears to be priced at a premium, with a P/E ratio of 37.19.
- Loss-Making Past: BlackBuck has posted losses for several fiscal years, and while Q1 of FY25 shows profitability, future profitability remains uncertain.
- Dividend Policy: BlackBuck has no historical record of dividend distribution, adopting a policy only in June 2024.
BlackBuck IPO Review: Is It a Good Investment?
For those looking at long-term growth opportunities, BlackBuck’s IPO presents an interesting case. With its strong digital platform and a substantial portion of the Indian truck operator market, BlackBuck offers value for investors seeking to benefit from the logistics sector’s digital transformation.
However, given the aggressive pricing and past losses, this IPO may appeal more to well-informed, risk-tolerant investors with a long-term perspective rather than those looking for quick returns.
BlackBuck IPO Apply: Should You Invest?
The BlackBuck IPO appeals to investors with a long-term perspective, particularly those looking to support digital innovation in India’s logistics industry. Given its aggressive pricing and recent transition to profitability, risk-tolerant investors with a focus on long-term growth may find it promising.
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Comparison with Peers
In the logistics and digital payments space, BlackBuck has no direct comparable listed peers in India. International counterparts include Fleetcor Technologies and Full Truck Alliance Co., but differences in market structure and digital adoption make direct comparison challenging.
Final Verdict
BlackBuck IPO stands out as a major player in the Indian logistics market. Its mission to empower truck operators, it aligns with India’s growing push toward digital inclusion and economic efficiency. This IPO is suitable for investors who understand the sector’s intricacies and are looking for long-term growth rather than immediate gains.