Bengaluru-based Zinka Logistics Solutions has received final observation from the capital markets regulator, the Securities and Exchange Board of India (Sebi), to raise funds through an initial public offering (IPO). Zinka Logistics had filed its IPO documents with Sebi on July 5, 2024.
Through the IPO, Zinka Logistics has fresh issue of shares of up to Rs 550 crore and offer for sale of up to 21.61 million shares, of face value of Re 1 each, by promoters and selling shareholder investors. The IPO also includes a reservation for eligible employee subscription, and a discount is offered to eligible employees who bid in the employee reservation portion.
Zinka Logistics said that in consultation with the lead bookrunner, it may consider a pre-IPO placement not exceeding 20 percent of the size of the new issue. If this placement is completed, the size of the new number will be reduced.
Zinka Logistics has proposed that the proceeds from its fresh issue, to the tune of Rs 200 crore, be used to fund sales and marketing costs, Rs 140 crore to invest in Blackbuck Finserve to fund the increase in its capital base to face its future. capital requirements and Rs 75 crore for financing expenses related to product development and general corporate needs.
Zinka Logistics offers digital solutions to the trucking industry in India. The company’s BlackBuck app serves as a comprehensive platform, providing payment, telematics, cargo management and vehicle financing solutions. Additionally, Zinka Logistics offers vehicle financing solutions, allowing truck operators to purchase used commercial vehicles or obtain financing on existing vehicles.
As per the Draft Red Herring Prospectus (DRHP), as on March 31, 2024, Zinka Logistics had facilitated 4,035 loans amounting to Rs 196.79 crore. Revenues from this sector are derived from loan servicing fees and other charges related to loan disbursement and recovery.
Zinka Logistics’ consolidated revenue from continuing operations increased 69.01% to Rs 296.92 crore in FY2024 from Rs 175.68 crore in FY23, mainly in due to an increase in the average number of truck operators making monthly transactions, which resulted in an increase in its commission income. , subscription fees and service fees.
First publication: October 8, 2024 | 1:55 p.m. STI
