Zinka Logistics Lists at 2.22% Premium, Maintains Gains on BSE/NSE

Zinka Logistics Solutions Limited (BlackBuck), founded in April 2015 and operating India's largest digital platform for truck operators with over 963,345 users, made its market debut on Friday, 22nd November 2024, with its shares listing on both BSE and NSE. The company's platform provides comprehensive services, including payments, telematics, freight marketplace, and vehicle financing.

Listing Details

• Listing Time & Price: At market open, Zinka Logistics share price were listed at ₹279.05 on both BSE and NSE, marking a positive start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a modest premium over the IPO issue price. Zinka Logistics had set its IPO price band from ₹259 to ₹273 per share, with the final issue price being fixed at the upper end of ₹273.
• Percentage Change: By 10:07 AM IST, the stock was trading at ₹278.90, maintaining a gain of 2.16% over the issue price despite slight profit booking.

First-Day Trading Performance

• Price Range: Hit a high of ₹285.80 and low of ₹272.90 in early trading, with VWAP at ₹279.93.
• Market Capitalisation: As of 10:07 AM IST, the company's market capitalisation stood at ₹4,926.40 crore, with free float market cap at ₹640.43 crore.
• Trading Volume: The traded volume was 2.36 lakh shares with a traded value of ₹6.60 crore, with 100% deliverable quantity.

Market Sentiment and Analysis

• Market Reaction: The stock showed stability at its opening price despite pre-listing GMP of ₹0.
• Subscription Rate: The IPO was modestly oversubscribed by 1.87 times (as of November 18, 2024, 6:19:08 PM), with QIBs leading at 2.72 times subscription, followed by retail investors at 1.70 times, and NIIs at 0.24 times.
• Trading Range: In early trading, the stock maintained a steady price of ₹279.05 without any fluctuation.

Growth Drivers and Challenges

Expected drivers of future performance:

• Largest digital truck operator platform in India
• Wide network built over nine years
• Strong multi-channel sales network
• New service offerings addressing market gaps
• Experienced management team

Potential challenges:

• Historical losses until FY24
• Competitive digital logistics sector
• High valuation concerns
• Operational scalability risks
• Revenue sustainability concerns

Utilisation of IPO Proceeds

Zinka Logistics plans to use the funds for:

• Sales and marketing costs
• Investment in NBFC subsidiary
• Product development expenses
• General corporate purposes

Financial Performance

The company has shown recent improvement:

• Revenue increased by 62.24% to ₹316.51 crore in FY2024 from ₹195.09 crore in FY2023
• Loss reduced to ₹193.95 crore in FY2024 from ₹290.50 crore in FY2023
• Q1 FY2025 showed profit of ₹32.38 crore with revenue of ₹98.33 crore

As Zinka Logistics begins its journey as a listed entity, market participants will closely monitor its ability to maintain profitability after its recent turnaround. The modest but positive listing suggests cautious optimism towards the company's prospects in the digital logistics sector.