Zinka Logistics IPO: Over 30% subscribed so far; which is why commentators suggest avoiding it
Zinka Logistics Solutions IPO: The initial public offering of Zinka Logistics Solutions, also known as BlackBuck, opened for registration on November 13. It will end on November 18, a long bidding process among newly launched IPOs.
Registration status
On November 14, 2024, the second day of the bidding process, it was subscribed by 29 percent and received a bid of 65,59,704 shares as against 2,25,67,270 shares at 12:27 PM, according to the BSE website. The category of individual investors (RIIs) applied for 31,57,164 shares or 75 percent, while the category of non-institutional investors (NIIS) applied for 1,85,814 shares or 3 percent. Meanwhile, qualified institutional buyers subscribed to 26 percent or 30,94,038 shares.
Share wise, the categories of RIIs, NIIs, and QIBs have 41,89,783 shares, 62,84,674 shares, and 1,20,66,813 shares respectively.
Heena Arora Agarwal of Fundvice said the IPO continues to attract attention as it strengthens the company’s position in the competitive logistics sector. “Investors remain enthusiastic about the company’s innovative technology and proven track record, seeing strong potential in its expansion plans,” he said.
Important Information; price band, issue size, quota and listing dates
Date of allotment
The expected allotment date of Zinka Logistics IPO is November 19, 2024. It means that investors can check their status on the next day i.e. November 20. As soon as the shares are deposited in their (applicants) demet account the stock will start working in the account. bonuses on November 21, 2024.
The size of the problem
The issue price of BlackBuck IPO is Rs 1,114.72 crores consisting of 2.01 crore new issue shares worth Rs 550.00 crores and 2.07 crore shares allotted for sale worth Rs 564.72 crores. The price band for the IPO has been fixed between Rs 259 and Rs 273.
Here are some details of the BlackBuck IPO:
- BRLMs: Axis Capital Ltd, Morgan Stanley India Company Pvt Ltd, JM Financial Ltd, and IIFL Capital Services Ltd
- Registrar L Kfin Technologies Ltd
Why should investors avoid it?
Analysts at domestic brokerages suggested avoiding the BlackBuck IPO. According to SBI Securities’ analysts due to high price band valuation of 13.1x FY25E they recommend ‘avoid’ the issue. Similarly, KRChoksey also advised investors to ‘avoid it’. “The company’s heavy reliance on fees and call revenue exposes it to increased competitive risk and pricing pressure, which could impact profitability,” the brokerage said.
“Due to the heavy reliance on payments and telematics, revenues are vulnerable to increased competition and price pressures, which may affect profitability. The brokerage also noted, “Unlike its peers, the logistics company continues to make losses even at the level of EBITDA, stability finances under pressure in the last three years.”
