[Update] BlackBuck IPO: Issue Subscribed 24% On Day 1

Update | November 13, 5:40 PM

The initial public offering (IPO) of logistics major BlackBuck was off to a decent start on the first day of bidding after the issue was subscribed 24%.

As per BSE data, the quota reserved for retail investors was subscribed 52% till 5:30 PM today (November 13), attracting bids for 21.33 Lakh shares as against 40.80 Lakh shares on offer.

Qualified institutional buyers placed bids for 30.94 Lakh shares as against 1.22 Cr shares reserved for them, resulting in a 25% subscription.

While the quota reserved for non-institutional investors was booked 0.02 times, employees oversubscribed the issue by 3.24X.

Original Story | November 13, 11:52 AM

The initial public offering (IPO) of logistics unicorn BlackBuck saw a tepid response from investors on the first day of bidding, with overall subscription reaching 5%.

As per BSE data, the issue attracted bids for 11.57 Lakh shares as against 2.24 Cr shares on offer as of 11:27 AM today (November 13).

The quota for retail individual investors received 26% subscription, attracting bids for 10.68 Lakh shares as against 40.80 Lakh shares on offer.

Non-institutional investors placed bids for 40,608 shares as against 61.21 Lakh shares reserved for them — translating to a mere 1% subscription.

On the other hand, the quota reserved for employees had already been oversubscribed 1.87 times, attracting bids for 48,654 shares as against 26,000 shares on offer. 

The portion for qualified institutional buyers is yet to be booked.

BlackBuck filed its red herring prospectus (RHP) with the Registrar of Companies last week, looking to raise as much as INR 1,114.72 Cr via its IPO. 

The BlackBuck IPO is a combination of fresh issuance of equity shares worth INR 550 Cr and an offer for sale of 2.06 Cr shares by several existing shareholders, as per the RHP.

The Peak XV and Accel-backed startup has set a price band of INR 259 to INR 273 per equity share for its IPO, which opened for subscription today and will conclude on November 18.

At the top end of this range, BlackBuck will be valued at around INR 4,817 Cr, a 35% discount over its last private valuation when it joined the unicorn club.

Ahead of the opening of its IPO, BlackBuck raised INR 501 Cr from anchor investors, including Nomura, Invesco, SBI, Streadview, among others. 

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 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.