The ₹1,114.72-crore IPO of Zinka Logistics Solutions Limited will close for public subscription today. The issue has so far subscribed only 0.32 time only with investors remaining somewhat lukewarm. The price band for the offer has been fixed at ₹259-273 a share.
The IPO is a mix of fresh offer of up to ₹550 crore and an offer for sale of up to 2.07 crore shares worth ₹564.72 crore by Promoter and Investor Selling Shareholders - Promoters and founders: Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam; and investors Quickroutes International (earlier known as Flipkart Logistics), Accel India, International Finance Corporation, Internet Fund, Peak XV Partners Investments, VEF AB (publ) and Sands Capital.
Investors can bid for a minimum of 54 equity shares and in multiples of 54 equity shares thereafter. The offer is being made through the book-building process, wherein not less than 75 per cent of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15 per cent of the net offer shall be available for allocation to non-institutional investors, and not more than 10 per cent of the net offer shall be available for allocation to retail individual bidders.
While QIB portion is subscribed 0.26 time so far while retail investors’ 0.90 time. NII (widely known as HNIs), however, remained non-participant as their quota subscribed just 0.04 time. Portion reserved for employee (26,000 shares) saw a huge response of 5.33 times.
The logistics major on Tuesday garnered ₹501 crore from anchor investors ahead of its initial public offering by allocating 83,63,915 shares at ₹273 a share on Tuesday to anchor investors. Foreign and Domestic Institutions that participated in the anchor include Nomura, Hornbill Orchid India Fund, Steadview Capital Mauritius, TIMF Holdings, Florida Retirement System, Massachusetts Institute of Technology, Carmignac Portfolio, BNP Paribas Funds, Pinebridge Global Funds, and Societe Generale. SBI Mutual Fund, Invesco India, Bandhan Mutual Fund, ICICI Prudential Life Insurance, Ashoka Whiteoak, SBI General Insurance, and Nuvama Multi Asset Strategy Return Fund.
Out of the total allocation of 1.83 crore equity shares to the anchor investors, 61.39 lakh shares were allocated to 3 domestic mutual funds through 6 schemes.
The funds raised will be used for sales and marketing, investing in Blackbuck Finserve Private Limited to expand its capital base, product development expenses, and general corporate purposes.
Zinka Logistics currently has 63,345 truck operators using its platform across India, supported by a network of 9,374 touchpoints. In FY24, the company reported a gross transaction value (GTV) of ₹5,356.20 crore for the quarter that ended on 30 June. It partners with FASTag banks and various oil marketing companies (OMCs) to provide efficient tolling and fuelling solutions, generating revenue through commissions based on transaction values.
Axis Capital Limited, Morgan Stanley India Company Limited, JM Financial Limited, and IIFL Capital Services Limitedare the book-running lead managers and KFin Technologies Limited is the registrar of the offer.