BlackBuck Shares List At 2.9% Premium Over IPO Price

SUMMARY

Shares of BlackBuck’s parent Zinka Logistics Solutions debuted at INR 280.90 on the NSE as against an IPO issue price of INR 273

BlackBuck’s IPO was oversubscribed 1.8X on the final day of bidding on November 18

Founded in 2015, BlackBuck initially started as a truck aggregator and now offers a full stack of solutions from loan management and telematics to payments for fuel, FASTag and truck financing

Shares of Zinka Logistics Solutions, the parent company of logistics major BlackBuck, made their stock market debut today (November 22), listing at INR 280.90 on the NSE, a modest premium of 2.89% over the IPO issue price of INR 273.

On the BSE, BlackBuck’s stock debuted at INR 279.05, a premium of 2.21% over the issue price.

BlackBuck’s market debut was scheduled for November 21, but it was deferred by a day amid Maharashtra Assembly elections.

The INR 1,115 Cr IPO of BlackBuck, which opened for public subscription on November 13 and concluded on November 18, was oversubscribed 1.8X, with the issue receiving bids for 4.19 Cr shares as against 2.25 Cr shares on offer.

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.

The initial public offering (IPO) of BlackBuck 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 qualified institutional buyers (QIBs) portion was booked 2.76 times while the quota reserved for retail investors was subscribed 1.65 times.

BlackBuck employees oversubscribed their quota by 9.86X, whereas non-institutional investors (NIIs) subscribed to the issue by 24%.

In the run up to the INR 1,115 Cr IPO, BlackBuck set its valuation to INR 4,800 Cr — a discount of over 32% from its peak valuation of INR 7,100 Cr in 2021.

BlackBuck set a price band of INR 259 to INR 273 per share for its IPO. At the upper price band of INR 273, early investors Accel and Flipkart stand to see gains of up to 5X.

However, the likes of Peak XV Partners and Swedish investment firm VEF AB would book losses on their partial stake sales.