Zinka Logistics Headed For ₹550 Cr IPO, Files Prospectus

Bengaluru-based Zinka Logistics Solutions Limited, a digital platform for truck operators, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an IPO.

What Happened: The company’s official statement released on Monday revealed that the IPO will consist of a fresh issuance of ₹550 crore and an offer for sale of up to 2.16 crore equity shares by promoters and shareholders.

There’s also a provision for a subscription by eligible employees, who will be offered a discount if they bid in the employee reservation portion.

Zinka Logistics may consider a pre-IPO placement not exceeding 20% of the fresh issue size, which would reduce the fresh issue size if completed. The offer is being made through the book-building process, with not less than 75% of the offer available for allocation to qualified institutional buyers.

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The proceeds from the fresh issuance, amounting to ₹200 crore, will be used for funding sales and marketing costs, ₹140 crore for investment in Blackbuck Finserve, and ₹75 crore for product development and general corporate purposes.

About The Company: Zinka Logistics is engaged in the trucking industry by digitally enabling truck operators. The company’s BlackBuck app provides solutions for payments, telematics, load management, and vehicle financing.

As of March 31, 2024, Zinka Logistics employs 1,783 permanent employees and engages 3,638 contract workers. The company has a network of 9,395 touchpoints across 628 districts, covering 80% of India’s districts, including all major transportation hubs and 75% of the toll plaza network.

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