Trucking platform Zinka Logistics Solutions has received final observation from SEBI to raise funds through an initial public offering (IPO).
It looks to raise ₹550 crore through a fresh issue of shares, with an offer for sale (OFS) of 21.6 million shares by promoters and existing shareholders. The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
The company, in consultation with the book-running lead manager, may consider a pre-IPO placement not exceeding 20 per cent of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
Use of funds
The proceeds from its fresh issuance to the extent of ₹200 crore will be utilised for funding towards sales and marketing costs, ₹140 crore for investment in Blackbuck Finserve for financing the augmentation of its capital base to meet its future capital requirements, and ₹75 crore for funding of expenditure in relation to product development and general corporate purposes.
Zinka Logistics aims to digitally empower truck operators to manage their businesses and increase their earnings. Its innovative BlackBuck app serves as a comprehensive platform, providing solutions for payments, telematics, load management and vehicle financing.
The consolidated revenue from continuing operations increased 69.01 per cent to ₹296.92 crore in FY24 compared with ₹175.6 crore of the previous fiscal, it said. The company narrowed its EBITDA loss to ₹138.7 crore in FY24 (₹213 crore). In FY24, Zinka Logistics facilitated over 413.34 million transactions from more than 2.5 lakh users.
Axis Capital, Morgan Stanley India, JM Financial, and IIFL Securities are the book-running lead managers and KFin Technologies is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.