On Day 2 of Logistics Startup BlackBuck’s IPO, Issue Has Been Subscribed 28%, Driven By Retail Investors

On the second day of the bidding process, the initial public offering (IPO) of logistics giant BlackBuck was 28% subscribed due to strong demand from retail investors.

BlackBuck, founded in 2015 by Rajesh Kumar Naidu Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam, is an online business-to-business marketplace for intercity full truck load (FTL) transportation.

The platform offers payment choices, a load marketplace, and vehicle financing services to truck operators across the country. The company claims to be India’s leading online trucking platform, with a 27% market share among all truck operators.

According to BSE data, investors bid for 62.40 lakh shares out of the 2.24 crore shares allotted for them as of 11:03 AM today (November 14).

Related: Leading Logistics Company Blue Dart Names Dipanjan Banerjee As Its New Chief Commercial Officer

The retail quota garnered offers for 28.90 lakh shares versus 40.80 lakh shares on sale, resulting in a 71% subscription.

Qualified institutional purchasers bid for 30.94 lakh shares out of 1.22 crore earmarked for them, resulting in a 25% subscription to the issue.

Non-institutional purchasers showed the least interest in the BlackBuck IPO, booking it only 0.02 times and bidding for 1.45 lakh shares versus 61.21 lakh shares on offer. The employee part has been oversubscribed 4.25 times.

At the end of the first day of bidding, BlackBuck’s IPO was 24% subscribed.

The company has set a price range of INR 259 to INR 273 per equity share for its IPO, which will be up for bids until November 18.

Zaggle’s IPO plans to raise up to INR 1,114.72 crore at the upper end of the price range.

Before its IPO, BlackBuck raised INR 501 crore from anchor investors such as Nomura, Invesco, SBI, Streadview, Hornbill Orchid India Fund, TIMF Holdings, Florida Retirement System, Massachusetts Institute of Technology, Carmignac Portfolio, BNP Paribas Funds, and Pinebridge Global Funds, among others.

In the first quarter of fiscal year 2024-25 (Q1 FY25), the company reported a net profit of INR 28.67 crore on operational sales of INR 92.16 crore.

BlackBuck’s IPO comes at a time when India has emerged as a hotbed for startup IPOs, with over a dozen new-age digital businesses going public this year. The list includes Ola Electric, Unicommerce, FirstCry, ixigo, and Menhood, among others.

Swiggy, the food delivery and rapid commerce powerhouse, made its Dalal Street debut on November 13, issuing its shares at an 8% premium on the NSE. 

Several more firms, including Ecom Express, Zappfresh, Rebel Foods, and Ather Energy, are planning to go public in the coming months.