Zinka Logistics’s IPO gets subscribed 1.85X on final day of bidding
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.
Zinka Logistics’ initial public offering (IPO) was subscribed 1.85 times on Monday, its third and final day of subscription, according to data from BSE.
The public issue was subscribed by 27% on Thursday, its second day of subscription, after getting subscribed by 21% on the opening day on November 13th.
The IPO saw robust bids from qualified institutional buyers (QIBs) on the third day, with the portion getting subscribed 2.76 times.
The non-institutional investors portion was subscribed about 0.23 times on the final day and failed to get fully subscribed amid a tepid response to the IPO.
The employee-reserved category led the subscription, with the offering subscribed about 9.6 times while the retail category was subscribed about 1.61 times.
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.
Proceeds from the fresh issuance will be used with Rs 200 crore allocated to sales and marketing initiatives, Rs 140 crore invested in Blackbuck Finserve to strengthen its capital base and support future funding requirements, Rs 75 crore directed toward product development, and the remainder earmarked for general corporate purposes.
The Accel-backed company managed to rein its losses by 33% to Rs 193.9 crore in FY24 from Rs 290 crore in FY24.
Zinka also reported a 69% rise in its operating revenue to Rs 296.9 crore compared to Rs 175.6 crore in FY23.
Edited by Jyoti Narayan