Logistics Startup BlackBuck’s IPO Sees Lukewarm Response, Lists At 2.9% Premium Over IPO Price

Manvendra HadaNovember 23, 2024

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Three points you will get to know in this article:

Shares of BlackBuck’s parent Zinka Logistics Solutions debuted on the NSE at INR 280.90, compared to an IPO issue price of INR 273.
BlackBuck’s IPO was oversubscribed 1.8 times on the final day of bidding on November 18.
BlackBuck’s market launch was originally scheduled for November 21, but was postponed by one day due to Maharashtra Assembly elections.

Blackbuck Debuts at Stock Market, Gets Listed At 2.89% Over the IPO Price

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

BlackBuck was founded in 2015 by Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam and began operations as a truck aggregator. Since then, the company has expanded its offerings to include load management and telemetry, as well as fuel payments, FASTag or toll levies, and truck financing.

BlackBuck is a B2B marketplace that specialises in inter-city full truckload (FTL) transportation.

On the BSE, BlackBuck’s stock opened at INR 279.05, a 2.21% premium to the issue price.

BlackBuck’s market launch was originally scheduled for November 21, but was postponed by one day due to Maharashtra Assembly elections.

BlackBuck IPO Subscription and Other Details

BlackBuck’s INR 1,115 crore IPO, which opened for public subscription on November 13 and closed on November 18, was 1.8X oversubscribed, with offers for 4.19 crore shares against 2.25 crore shares on offer.

BlackBuck’s initial public offering (IPO) consisted of a fresh issuance of shares worth INR 550 crore and an offer for sale (OFS) component of over 2.06 crore shares.

The qualified institutional buyers (QIB) part was booked 2.76 times, while the retail investor quota was subscribed to 1.65 times.

Employees at BlackBuck oversubscribed their quota by 9.86X, while non-institutional investors (NIIs) subscribed by 24%.

BlackBuck IPO Price, Valuation

In the run-up to the INR 1,115 Cr IPO, BlackBuck put its valuation at INR 4,800 Cr, a more than 32% drop from its highest valuation of INR 7,100 Cr in 2021.

BlackBuck has proposed a price band of INR 259 to INR 273 per share for its IPO. At the highest price band of INR 273, early investors Accel and Flipkart may realize gains of up to 5X.

However, Peak XV Partners and Swedish investment firm VEF AB would lose money on their partial ownership sales.