BlackBuck parent Zinka Logistics lists at over 2% premium over IPO price

Shares of Zinka Logistics made a strong debut on the stock exchanges on Friday, opening at Rs 280.09, which marked a 2.89% increase from its issue price.

The Sensex was up 340.49 points to 77,496.28 while the Nifty50 was up 0.45% to 23,454.25 on Friday at opening.

The shares of Zinka Logistics, the parent company of BlackBuck, were trading flat in the grey market premium (GMP) on Thursday, indicating muted demand. This means that the company’s shares did not witness any premium or discount to its issue price of Rs 273 apiece.

The grey market is an unofficial market where traders buy and sell shares or IPO applications of companies at a premium or discount before the issues are officially launched on public markets.

The company’s initial public offering (IPO) was subscribed 1.85 times on Monday, its third and final day of subscription, after seeing lacklustre bidding on its first and second day. Its public issue was subscribed by 27% on November 14, its second day of subscription, after getting subscribed by 21% on the opening day on Wednesday, November 13.

Zinka, which operates the BlackBuck app, a digital platform for truck operators, had priced its IPO between Rs 259-273 per share for its Rs 1,115 crore initial sale.

The IPO is a combination of a fresh issue of shares worth Rs 550 crore and an offer of sale (OFS) of up to 2.06 crore shares. The OFS by promoters and investor-selling shareholders is valued at Rs 565 crore at the upper end of the price band.

The company managed to rein in its losses by 33% to Rs 193.9 crore in FY24 from Rs 290 crore it clocked a year ago. During the same period, it witnessed a 69% rise in its operating revenue to Rs 296.9 crore as compared to Rs Rs 175.6 crore it posted in 2023.

Zinka Logistics’ shares were up 1.1% at Rs 282.1 apiece, as of 10:06 AM on Friday.