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BlackBuck IPO: All You Need to Know About the Upcoming IPO
The Indian IPO
market has been buzzing with excitement, and the BlackBuck IPO is one of the
most anticipated ones this year. Zinka Logistics Solution Limited, popularly
known as BlackBuck, is the company behind this IPO. BlackBuck operates a
digital platform that connects truck operators across India with businesses
needing freight services, making logistics and transportation efficient and
tech-enabled.
In this article,
we’ll dive into the key details about the BlackBuck IPO, including the IPO
date, price, objectives, financials, and other essential aspects. If you're
considering investing in this IPO, read on for everything you need to know.
About BlackBuck and Its Operations
Founded in April
2015, BlackBuck (Zinka Logistics Solution Limited) has transformed logistics in
India by digitizing the trucking ecosystem. The company’s digital platform, the
BlackBuck app, helps truck operators manage their businesses seamlessly. By the
fiscal year 2024, approximately 963,345 truck operators 27.52% of all truck
operators in India had used the BlackBuck platform, making it a leading player
in this space.
Key Details of BlackBuck IPO
Here’s a quick
summary of the BlackBuck IPO details to give you an overview:
|
IPO Details |
Description |
IPO Size | ₹1,114.72 crores |
Fresh Issue | 2.01 crore
shares, aggregating to ₹550 crores |
Offer for Sale
(OFS) | 2.07 crore
shares, aggregating to ₹564.72 crores |
IPO Opening Date | November 13, 2024 |
IPO Closing Date | November 18, 2024 |
Allotment Date | November 19, 2024 |
Listing Date | November 21, 2024 |
Price Band | ₹259 to ₹273 per
share |
Minimum Lot Size | 54 shares |
Minimum
Investment for Retail Investors | ₹14,742 |
sNII Minimum
Investment | ₹206,388 (14
lots, 756 shares) |
bNII Minimum
Investment | ₹1,002,456 (68
lots, 3,672 shares) |
Employee
Reservation | Up to 26,000
shares, with a ₹25 discount |
BlackBuck IPO Reservation
The IPO shares are
allocated across different investor categories as follows:
- Qualified Institutional Buyers (QIBs): At least 75% of the Net Issue
- Non-Institutional Investors (NIIs): Not more than 15% of the Net Issue
- Retail Individual Investors (RIIs): Not more than 10% of the Net Issue
Objectives of BlackBuck IPO
The funds raised
through the BlackBuck IPO will be used for the following purposes:
- Expansion of Operations: With fresh funds, BlackBuck aims to enhance its operational capabilities to serve more truck operators and businesses efficiently.
- Offer for Sale: Part of the IPO includes an Offer for Sale (OFS) by existing shareholders, allowing them to divest their stakes.
- General Corporate Purposes: A portion of the funds will be used for general corporate activities, supporting business growth and strengthening the company's market position.
BlackBuck’s Financial Performance
Before investing,
understanding BlackBuck’s financial health is crucial. Here’s a look at the
company’s financial information, showing revenue growth and improvements in
profitability:
|
Period Ended |
Revenue (in ₹ crores) |
Profit After Tax (in ₹ crores) |
Net Worth (in ₹ crores) |
30 Jun 2024 | 98.33 | 32.38 | 344.98 |
31 Mar 2024 | 316.51 | -193.95 | 311.29 |
31 Mar 2023 | 195.09 | -290.50 | 352.66 |
31 Mar 2022 | 156.13 | -284.56 | 585.08 |
Over recent years,
BlackBuck has shown revenue growth, although it has been operating at a loss in
some years. However, the latest financials indicate a positive swing in
profitability, with a significant increase in PAT as of June 2024.
BlackBuck IPO Price Band and Investment Options
The IPO price band
is set between ₹259 and ₹273 per share. The minimum lot size for retail
investors is 54 shares, requiring an initial investment of ₹14,742. For sNIIs
and bNIIs, the minimum investments are ₹206,388 (14 lots) and ₹1,002,456 (68
lots), respectively.
Employee
Reservation: BlackBuck has reserved 26,000 shares for its employees, offered at
a discounted rate of ₹25 below the issue price.
Why Invest in BlackBuck IPO?
Here are a few
factors to consider when thinking about investing in BlackBuck IPO:
- Strong Market Position: BlackBuck’s platform is widely adopted, covering over a quarter of the truck operators in India.
- Growth in Revenue: With steady revenue growth and a recent positive swing in profitability, BlackBuck’s financials indicate potential.
- Digital Transformation in Logistics: As logistics continues to be digitized, BlackBuck is well-positioned to capture market share and scale its operations.
Potential Risks
While there are
promising aspects, here are some risks to consider:
- Operating Losses: BlackBuck has had a history of operating losses, though it has started to show profit in the latest fiscal period.
- Competitive Market: The logistics tech space is highly competitive, with several players vying for market share.
- Dependence on Truck Operators: Since BlackBuck primarily caters to truck operators, any downturn in the trucking industry could impact its performance.
FAQs About BlackBuck IPO
1. What is the BlackBuck IPO date?
The
BlackBuck IPO opens on November 13, 2024, and closes on November 18, 2024.
2. What is the BlackBuck IPO price band?
The IPO
price band is set at ₹259 to ₹273 per share.
3. How much do retail investors need to invest in BlackBuck IPO?
Retail
investors need a minimum investment of ₹14,742 for 54 shares (one lot).
4. What is the purpose of the BlackBuck IPO?
The funds
raised will be used to expand operations, facilitate an Offer for Sale by
existing shareholders, and fund general corporate activities.
5. When will the BlackBuck IPO be listed?
The
tentative listing date for BlackBuck IPO is November 21, 2024, on the BSE and
NSE.
6. How has BlackBuck’s financial performance been in recent years?
BlackBuck’s
revenue has been growing, with a recent increase in profitability as of June
2024.
Conclusion
The BlackBuck IPO
presents an exciting investment opportunity in the logistics technology sector.
With a strong digital platform and a substantial market share among Indian
truck operators, BlackBuck is a prominent player in this space. However, as
with any investment, it’s essential to weigh both the growth potential and the
risks involved. Make sure to consider your financial goals and risk tolerance
before investing in this IPO.
For more insights
into upcoming IPOs and investment opportunities, check out our other articles
on the latest IPO news and analyses.