November 13, 2024
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Review of Zinka Logistics IPO
The IPO opens on 13 November and closes on 15 November 2024.
Founded in April 2015, Zinka Logistics Solution Limited has become a leading digital platform for truck operators in India. Through its flagship offering, the BlackBuck App, the company has empowered over 963,345 truck operators as of fiscal year 2024, representing 27.52% of the total truck operators in the country. With a robust range of services including payments, telematics, load marketplace, and vehicle financing, Zinka Logistics is driving innovation and operational efficiency in India’s vast logistics ecosystem.
Empowering Truck Operators: Core Offerings of the BlackBuck App
The BlackBuck App is designed to streamline the operations of truck operators by providing them with a comprehensive digital platform that offers the following key services:
- Payments: Enabling seamless and secure transactions for truck operators, making it easier to handle payments across the logistics chain.
- Telematics: Offering advanced vehicle tracking and monitoring capabilities to improve fleet management and operational efficiency.
- Load Marketplace: Connecting truck operators with freight providers, ensuring better load optimization and reduced idle time.
- Vehicle Financing: Facilitating easy access to financing for truck operators to purchase new vehicles or upgrade their fleet.
As of March 31, 2024, Zinka Logistics has processed a Gross Transaction Value (GTV) of Rs 173,961.93 million in payments, demonstrating the scale and success of its platform.
The IPO size is Rs. 836.04 crore, offering 40832320 shares. This size is relatively modest when compared to recent IPO trends. With 75615 applications received, the retail portion of the offering is likely to be subscribed once.
Financial and Profit track record of the company is not impressive. On total income of Rs. 317 crore, the company has incurred net loss of Rs. 194 crore during the accounting year 2023-24. The figure of net loss is very heavy.
Given huge losses during last 3 years, the IPO appears to be not so attractive.
+ from fundamental angle: May avoid
+ from grey market angle: May Avoid
