BlackBuck (Zinka Logistics) IPO Anchor Allocation at 44.97%

BlackBuck IPO saw a significant anchor allocation response, with 44.97% of the total IPO size subscribed by anchor investors. Out of 40,834,701 shares on offer, anchors picked up 18,363,915 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 12th November 2024, just ahead of the IPO opening on 13th November 2024.

The book-built issue of ₹1,114.72 crores comprises a fresh issue of 20,146,520 shares aggregating to ₹550.00 crores and an offer for sale of 20,685,800 shares aggregating to ₹564.72 crores. The price band is set at ₹259 to ₹273 per share, with a face value of ₹1 per share. This includes a share premium of ₹272 per share at the upper end of the price band. The issue includes a reservation of up to 26,000 shares for employees offered at a discount of ₹25 to the issue price.

The anchor allocation process, which took place on 12th November 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹273 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

Notably, the 18,363,915 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. The QIB quota has been adjusted to ensure that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For BlackBuck IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 19th December 2024 
• Lock-in Period (Remaining Shares): 17th February 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in BlackBuck IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels

On 12th November 2024, BlackBuck IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 18,363,915 shares were allotted to 26 anchor investors. The allocation was done at the upper IPO price band of ₹273 per share, resulting in an overall anchor allocation of ₹501.33 crore. The anchors have already absorbed 44.97% of the total issue size of ₹1,114.72 crore, indicating strong institutional demand.

Out of the total allocation of 18,363,915 Equity Shares to the Anchor Investors, 6,139,530 Equity Shares (i.e., 33.43% of the total allocation) were allocated to 3 domestic mutual funds through 6 schemes.

Key IPO Details:

• IPO Size: ₹1,114.72 crores 
• Shares Allocated to Anchors: 18,363,915 
• Anchor Subscription Percentage: 44.97% 
• Listing Date: 22nd November 2024 
• IPO Opening Date: 13th November 2024

About Zinka Logistics Solutions Limited and How to Apply for BlackBuck IPO

Founded in April 2015, Zinka Logistics Solutions Limited offers a digital platform, the BlackBuck app, for truck operators. In the fiscal year 2024, 963,345 truck operators in the country conducted their business through the platform, representing 27.52% of all Indian truck operators. The company's BlackBuck app is a platform that offers payments, telematics, a freight marketplace, and vehicle financing services to help truck operators achieve their goals efficiently. As of March 31, 2024, the company had processed a Gross Transaction Value (GTV) of Rs. 173,961.93 million in payments and had a monthly average of 356,050 active telematics devices. The company offered vehicle financing to customers in 48 districts across seven states in India. As of 31st March 2024, the company had 4,289 employees.

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