[Update] BlackBuck IPO Sees Muted Response With 32% Subscription On Day 2

Update | November 14, 5:45 PM

The initial public offering (IPO) of logistics major BlackBuck saw lukewarm response from investors on the second day of bidding, with overall subscription reaching 32%.

Investors bid for 72.29 Lakh shares out of 2.24 Cr shares on offer till 5:30 PM, BSE data showed.

BlackBuck’s IPO saw healthy demand from retail investors, who bid for 37.63 Lakh shares as against 40.80 Lakh shares reserved for them. This translated to a 92% subscription.

The quota reserved for qualified institutional buyers received bids for 30.97 Lakh shares as against 1.22 Cr shares on offer, resulting in a 25% subscription.

However, the issue saw tepid response from non-institutional buyers, who subscribed to the IPO only 4%, bidding for 2.29 Lakh shares as against 61.21 Lakh shares reserved for them. 

The employee portion was heavily booked and was oversubscribed 5.34X at the end of the second day of the bidding process.

Update | November 14, 2:40 PM

The initial public offering (IPO) of logistics unicorn BlackBuck is witnessing muted response from investors as the issue has been subscribed only 30% on the second day of bidding process so far.

The initial share sale attracted bids for 68.45 Lakh shares as against 2.24 Cr shares on offer till 2:30 PM today (November 14).

Retail participants bid for 34.22 Lakh shares out of 40.80 Lakh shares reserved for them, subscribing to the issue by 84%.

The portion reserved for qualified institutional buyers was booked 0.25 times, attracting bids for INR 30.97 Lakh shares as against 1.22 Cr shares on offer.

While the employee portion was oversubscribed 4.97 times, that of non-institutional buyers was booked only 0.25 times. 

Original Story | November 14, 11:23 AM

Driven by robust demand from retail investors, the initial public offering (IPO) of logistics major BlackBuck has been subscribed 28% on the second day of the bidding process.

Investors had bid for 62.40 Lakh shares out of 2.24 Cr shares reserved for them till 11:03 AM today (November 14), as per BSE data.

The quota reserved for retail participants attracted bids for 28.90 Lakh shares as against 40.80 Lakh shares on offer, translating to a 71% subscription.

Qualified institutional buyers bid for 30.94 Lakh shares out of 1.22 Cr shares reserved for them, subscribing to the issue by 25%.

The BlackBuck IPO garnered least interest from non-institutional buyers, who booked the issue 0.02 times, placing bids for 1.45 Lakh shares as against 61.21 Lakh shares on offer. The employee portion has been oversubscribed 4.25X.

At the end of the first day of the bidding process, BlackBuck’s IPO was subscribed 24%.

Founded in 2015 by Rajesh Kumar Naidu Yabaji, Chanakya Hridaya and Ramasubramanian Balasubramaniam, BlackBuck operates an online B2B marketplace for inter-city full truck load (FTL) transportation.

Its platform provides payment options, load marketplace, and vehicle financing services to truck operators in the country. The company claims to be the online trucking platform in India, accounting for 27% market share of all truck operators.

The company has fixed a price range of INR 259 to INR 273 per equity share for its IPO, which will be available for bidding till November 18. 

At the upper end of the price band, Zaggle aims to raise as much as INR 1,114.72 Cr via its IPO.

Ahead of its IPO, BlackBuck raised INR 501 Cr from anchor investors, including Nomura, Invesco, SBI, Streadview, Hornbill Orchid India Fund, TIMF Holdings, Florida Retirement System, Massachusetts Institute of Technology, Carmignac Portfolio, BNP Paribas Funds, Pinebridge Global Funds, among others.

The company reported a net profit of INR 28.67 Cr in the first quarter of the financial year 2024-25 (Q1 FY25) on an operating revenue of INR 92.16 Cr.

BlackBuck’s IPO comes at a time when India has emerged a hotbed for startup IPOs, with nearly a dozen new-age tech companies making their stock market debut this year. The list includes Ola Electric, Unicommerce, FirstCry, ixigo, Menhood, among others.

Food delivery and quick commerce giant Swiggy made its Dalal Street debut on November 13, with its shares listing at a 8% premium on the NSE.  

A number of other startups such as Ecom Express, Zappfresh, Rebel Foods, Ather Energy, among others, are also eyeing a public listing in the coming months.