Zinka Logistics Options IPO: GMP, subscription standing to overview. Must you apply as bidding ends on Monday?

Zinka Logistics Options IPO: The preliminary public providing (IPO) of Zinka Logistics Options Ltd has been witnessing subdued demand to date. The Zinka Logistics Options IPO opened for public subscription on November 13, and can shut on November 18. Zinka Logistics Options IPO is India’s largest digital platform for truck operators when it comes to variety of customers, which owns the BlackBuck App.

Zinka Logistics Options IPO will enter its third and the final day of bidding course of on Monday, November 18. Forward of the difficulty closing, allow us to verify Zinka Logistics Options IPO GMP, subscription standing, overview and different key particulars.

Zinka Logistics Options IPO Subscription Standing

Zinka Logistics Options IPO has been subscribed 32% to date on November 14, the second day of the bidding course of. Based on the NSE knowledge, the general public supply acquired bids for 72.15 lakh fairness shares as towards 2.25 crore shares on the supply.

The general public challenge acquired 90% subscription within the retail class and 4% subscription within the Non Institutional Buyers (NII) class. The Certified Institutional Consumers (QIBs) portion has been booked 26%, whereas the portion for Staff has been subscribed 5.32 occasions to date.

Zinka Logistics Options IPO GMP

Zinka Logistics Options shares are displaying a muted development within the unlisted market with a subdued gray market premium (GMP) immediately. Based on inventory market observers, Zinka Logistics Options IPO GMP immediately is ₹0 per share. This means that within the gray market, Zinka Logistics Options shares are buying and selling at par with their IPO value at ₹273 apiece, which implies with none premium or low cost to the difficulty value.

Zinka Logistics Options IPO: Must you apply?

Zinka Logistics Options Ltd is India’s largest digital platform for truck operators when it comes to variety of customers, with 963,345 truck operators within the nation transacting on its platform in FY24, which includes 27.52% of India’s truck operators.

When it comes to monetary side, from being a loss making entity, firm turned worthwhile in Q1FY25.

“On the higher value band firm is valuing at Mcap/Gross sales of 16.2x on FY24 foundation with a market cap of ₹48,178 million publish challenge of fairness shares. On the valuation entrance, we imagine that the corporate is pretty priced,” mentioned brokerage agency Anand Rathi.

It recommends a “Subscribe – Long run” ranking to the Zinka Logistics Options IPO.

The corporate’s whole revenue grew at a CAGR of roughly 42.38% from FY22 to FY24.

“This sturdy development signifies the corporate’s improved income technology functionality, although it’s nonetheless working towards eliminating its carried-forward losses, as seen by the current progress in Q1 FY25 with a internet revenue of ₹32.38 crore. Attributing the annualized FY25 earnings to the post-IPO totally diluted fairness base ends in a P/E of 37.19, which is cheap for a tech firm. Nonetheless, primarily based on FY24 earnings, the P/E stays unfavourable, indicating the difficulty seems aggressively priced,” mentioned Canara Financial institution Securities.

Given BlackBuck’s sturdy market place, scalable asset-light mannequin, and excessive development potential, it is suggested as a good funding within the logistics tech sector. Nonetheless, the corporate needs to be monitored carefully for regulatory adjustments and aggressive pressures that would impression its profitability and market share, it added.

The brokerage agency recommends to subscribe Zinka Logistics Options IPO for long-term beneficial properties.

Zinka Logistics Options IPO Particulars

Zinka Logistics Options IPO opened for public subscription on Wednesday, November 13, and can shut on Monday, November 18. The IPO allotment is predicted to be finalized on November 19, and the IPO itemizing date is probably going November 21. Zinka Logistics Options shares will probably be listed on each the inventory exchanges, BSE and NSE.

Zinka Logistics Options IPO value band has been set at ₹259 to ₹273 per share. On the upper-end of the value band, the corporate plans to boost ₹1,114.72 crore from the book-built challenge which is a mixture of contemporary challenge of two.01 crore fairness shares value ₹550 crore and an offer-for-sale (OFS) of two.07 crore shares amounting to ₹564.72 crore.

The corporate plans to utilse the web challenge proceeds for funding in the direction of gross sales and advertising prices, funding in its NBFC subsidiary, funding of expenditure about product growth and basic company functions.

Axis Capital, Morgan Stanley India Firm, JM Monetary and IIFL Securities are the guide working lead managers of the Zinka Logistics Options IPO, whereas Kfin Applied sciences is the IPO registrar.

Disclaimer: The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint. We advise buyers to verify with licensed consultants earlier than making any funding selections.