[Update] BlackBuck IPO: Issue Subscribed 1.86X On Final Day

Update | November 18, 06:15 PM

The public issue of logistics unicorn BlackBuck closed with an oversubscription of 1.86X, with investors placing bids for 4.19 Cr shares as against 2.25 Cr shares on offer.

The initial public offering (IPO) saw a strong response from qualified institutional buyers (QIBs) on the final day. The QIBs bid for 3.32 Cr shares as against 1.20 Cr shares reserved for them, resulting in an oversubscription of 2.76X. 

Retail investors’ quota was subscribed 1.65X, receiving bids for 69.23 Lakh shares as against 41.89 Lakh shares reserved for them. BlackBuck employees oversubscribed their quota by 9.86X. The company’s employees bid for 2.56 Lakh shares against 26,000 shares earmarked for them. 

However, non-institutional investors (NIIs) continued to be bearish, and their quota was subscribed a meagre 24%. These investors bid for 14.87 Lakh shares against 62.84 Lakh shares reserved for them. 

____________________________________________________________________________

Original November 1:55 PM

A muted demand for the logistics unicorn BlackBuck’s initial public offering (IPO) continued to prevail during the initial hours of trade today (November 18). 

As of 1:48 PM, BlackBuck’s public offer saw a 53% subscription, with investors cumulatively bidding for 1.20 Cr shares as against the 2.24 Cr shares on offer.

As per BSE data, the IPO saw a maximum interest from the company’s employees. Shares reserved for the employees received bids for 2.18 Lakh shares as against the 26,000 reserved for them, resulting in an oversubscription of 8.40X. 

Besides employees, the company’s IPO saw a bearish sentiment from the remainder of investors across categories. Retail investors (RIIs) bid for 56.53 Lakh shares against the 41.89 Lakh shares on offer for them. This resulted in a 1.35X oversubscription.

Response from qualified institutional buyers (QIBs) to the IPO continued to remain underwhelming on Day 3. The QIBs have been allotted 1.20 Cr shares, but the portion received bids for only 54.43 Lakh shares. This translates to a subscription of 45%. 

Similar to QIBs, non-institutional investors (NIIs) interest in the public issue also remained underwhelming on the final day of the IPO. NIIs bid for 7.00 Lakh shares against the 62.84 Lakh shares reserved for them, resulting in a subscription of 11%.

The company’s IPO is scheduled to close by the end of the trading session today. 

It is pertinent to note that the company’s public offer has failed to generate an excitement from the investors till now. On Day 2 of the IPO, the company received a 32% subscription for its public offer. 

Prior to the IPO, the company raised INR 501.33 Cr from anchor investors, who subscribed to 1.83 Cr equity shares at INR 273 apiece.

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.

The company aims to raise INR 1,114.72 Cr from its IPO. The logistics majors’ public issue comprises a fresh issue of equity shares worth INR 550 Cr and an offer for sale of up to 2.06 Cr shares. The company has set a price band of INR 259 to INR 273 per equity share for the IPO.

Ahead of its IPO, the Flipkart-backed logistics company turned profitable in the June quarter of the financial year 2024-25 (Q1 FY25). According to its RHP, BlackBuck’s net profit surged to INR 28.67 Cr as against a net loss of INR 35.93 Cr in the corresponding quarter last year.

This came on the back of a sizable jump in its revenue from operations, which surged nearly 55% to INR 92.16 Cr in the reported quarter from INR 59.46 Cr in the same quarter last year.