Zinka Logistics Solution Limited IPO

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Zinka Logistics Solution IPO

Zinka Logistics went for an IPO, opening to bidding on November 13. The logistics firm hopes to secure Rs. 1,142.72 crores with this launch. Bidding will be open until November 18, and the price band ranges between Rs. 259 and Rs. 273 per equity share. The issue consists of fresh and offer-for-sale shares, and initial offers have received tepid responses, with grey market sentiments decreasing after intensified sales.

About Zinka Logistics

As a leader in logistics, Zinka Logistics operates a digital platform called BlackBuck, which is meant for truck operators. With a robust distribution network that operates across channels and a customer-focused sales and service strategy, the logistics company is highly reliable and ready to scale and collaborate effectively with multiple stakeholders. Zinka Logistics has an experienced management team and board, and the company’s playbook is prepared to create and launch new products anytime.

The IPO

The GMP (Grey Market Premium) declined to zero today, compared to 25 on Wednesday when bidding opened. That means the stock fell right after the first day of bidding. However, the shares are currently at par, and according to grey market predictions, the stock’s list price should coincide with the upper band price, which is Rs. 273 per equity share.

Market experts cited tepid response and intensified selling in the secondary markets as the main reasons for the tumble. Many even state a weakness in the Indian stock markets that made investors go into wait-and-watch mode as another possible reason.

Investor Outlook

Zinka Logistics is India’s largest digital platform for truck operators, and experts like Anand Rathi have vouched for subscribing to the IPO. The premier logistics company has a network of 963,345 truck operators as of fiscal 24, which is 27.52% of all of India’s truck operators. Revenue generated from the truck operators comes from commission income via the company’s payment system, the subscription fees from the telematics, payments, and loads marketplace, and service fees from vehicle financing.

Looking at the financials, Zinka Logistics has been making losses, only turning profitable in the first quarter of FY25.

Master Capital Services also vouched for subscribing to the IPO, even as the total revenue from the Indian trucking industry lies between $18 billion and $25 billion in FY24. The expectation IS that the revenue will reach $35 billion by FY2028. India’s economy is growing, and it needs support from the logistics sector. Trucking is a vital component of logistics, which is why Master Capital is betting on this IPO.

Conclusion

Logistics, and particularly trucking, can help support India’s economic growth with innovative products from companies like Zinka, tailored to meet the specific needs of truck drivers. As one of India’s largest providers of digital platforms for the trucking industry, the company intends to focus on acquiring more customers for its business and adding new truck operators to its platform, which can help bring in more revenue. Similarly, the loads marketplace and vehicle financing are two other areas that Zinka Logistics wants to invest in by developing new products and technologies.

As for investors looking to bet on this IPO, experts recommend subscribing for the long term.

Zinka Logistics

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Zinka Logistics Solution IPO

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