BlackBuck Shares Hit 20% Upper Circuit At INR 325.10

Shares of Zinka Logistics Solutions, the parent company of logistics major BlackBuck, hit 20% upper circuit today (December 2) at INR 325.10 apiece on the BSE fuelled by heavy trading volumes.

More than 57.55 Lakh BlackBuck shares worth INR 187.23 Cr changed hands on the BSE and the NSE today.

As of market close today, the stock was up 16% over its listing price and 19% up over its IPO issue price. The company’s market capitalisation stood at INR 5,737.32 Cr (around $677.26 Mn), implying that BlackBuck has not been able to reattain its unicorn status so far.

It is pertinent to note that he company had set a IPO valuation of INR 4,800 Cr — a steep 32% discount over its peak valuation of INR 7,100 Cr in 2021.

Amid a surge in IPOs of new-age tech companies this year, logistics unicorn BlackBuck made its Dalal Street debut on November 22. The stock listed at INR 279.05 on the BSE against the IPO issue price of INR 273. 

Founded in 2015 by Rajesh Yabaji, Chanakya Hridaya and Rama Subramaniam, BlackBuck commenced operations as a truck aggregator. Since then, the company has diversified and now offers a full stack of solutions – from load management and telematics to payments for fuel, FASTag or toll charges, and truck financing. 

BlackBuck operates a B2B marketplace specialising in inter-city full truckload (FTL) transportation. 

BlackBuck’s IPO was a combination of fresh issuance of shares worth INR 550 Cr and an offer for sale (OFS) component of more than 2.06 Cr shares. The issue received a lukewarm response from investors, and was subscribed only 1.86 times.

Early backers of BlackBuck – Accel and Flipkart – made gains of up to 5X by divesting some shares in the offer for sale of its IPO. On the other hand, the likes of Peak XV Partners and Swedish investment firm VEF AB booked losses via partial stake sales.  

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