Flipkart-backed Zinka Logistics Solutions files draft IPO papers with SEBI

Bengaluru-based Zinka Logistics Solutions Ltd, has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Zinka Logistics is committed to redefining the Indian transportation sector by providing truck owners with digital tools to better manage their companies and boost their profits. The company's cutting-edge BlackBuck app functions as a full platform, including options for financing for vehicles, load management, telemetry, and payments.

With a face value of ₹1 per share, the IPO consists of a combination of a fresh ₹550 crore issue and an offer for sale (OFS) bypromoters and investor selling shareholders to sell up to 21.61 million equity shares.

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The following equity shares are apart of the OFS: up to 22.19 lakh equity shares by Rajesh Kumar Naidu Yabaji; up to 11.09 lakh equity shares by Chanakya Hridaya; up to 11.09 lakh equity shares by Ramasubramanian Balasubramaniam; up to 43.09 lakh equity shares by Accel India IV (Mauritius) Ltd; up to 39.74 lakh equity shares by Quickroutes International Private Ltd; up to 17.12 lakh equity shares by International Finance Corporation; 13.24 lakh equity shares by Sands Capital Private Growth II Ltd; up to 9.27 lakh equity shares by GSAM Holdings LLC; up to 9.23 lakh equity shares by Accel Growth Fund V L.P.; and up to 8.83 lakh equity shares by Internet Fund III Pte Ltd.

The proceeds of its fresh issuance, up to ₹200 crore, will be used to finance sales and marketing expenses, invest ₹140 crore in Blackbuck Finserve Private Ltdto finance the expansion of its capital base to meet future capital requirements, and fund ₹75 crore in product development and general corporate purposes.

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The pre-IPO placement, if approved by the book-running lead manager and the business, might account for up to 20% of the total amount of the fresh offering. Once this placement concludes, the size of the new issue will be reduced.

Zinka Logistics Solutions IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors.

The book-running lead managers are Axis Capital Ltd, IIFL Securities Limited, JM Financial Ltd, and Morgan Stanley India Company Ltd. The offer's registrar isKFin Technologies Ltd.

Zinka Logistics' average monthly transacting truck operators increased, which in turn increased its commission income, subscription fees, and service fees. As a result, the company's consolidated revenue from continuing operations increased by 69.01% to ₹296.92 crore in Fiscal 2024 from ₹175.68 crore in Fiscal 2023.

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