SUMMARY
- BlackBuck’s parent company, Zinka Logistics Solutions, has received approval from SEBI for its IPO worth over Rs 550 crore.
- BlackBuck received its final approval from the regulatory body on October 3.
- The offering includes new equity shares valued at Rs 550 crore and an OFS component of up to 2.16 crore shares.
Logistics firm BlackBuck‘s parent company, Zinka Logistics Solutions, has received approval from the Securities and Exchange Board of India (SEBI) for its IPO worth over Rs 550 crore.
According to documents from SEBI, BlackBuck received its final approval from the regulatory body on October 3.
The logistics company, which operates as an online marketplace for truckers and freight operators, has been backed by major investors such as Peak XV, Accel, Tiger Global, and others. It submitted its DRHP for an IPO in July.
The offering includes new equity shares valued at Rs 550 crore and an OFS component of up to 2.16 crore shares.
The three founders of BlackBuck, Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam, are planning to sell a total of 44.37 Lakh shares through the OFS segment. Rajesh Yabaji is set to sell the most shares at 22.18 Lakh, with Chanakya Hridaya and Rama Subramaniam each selling 11.09 Lakh shares, as detailed in the company’s draft prospectus.
The company intends to use Rs 200 crore from the IPO’s net proceeds for sales and marketing activities and Rs 140 crore for investment in its NBFC subsidiary, Blackbuck Finserve Private Limited. Additionally, a portion of the funds will be used for product development and general corporate expenses.
Lead book-running lead managers for this IPO include Axis Capital, Morgan Stanley, JM Financial, and IIFL Securities.
BlackBuck, founded by alumni of IIT Kharagpur in 2015, is a B2B marketplace focused on inter-city full truckload (FTL) transportation. Essentially, it connects truckers with businesses in need of shipping services in real-time through its technology-enabled platform, operating across India.
The company’s app offers a wide range of solutions, including payment processing, telematics, load management, and vehicle financing. It also provides financing options for truckers, allowing them to purchase used commercial vehicles or secure financing for existing ones.
Despite operating at a loss, BlackBuck has managed to narrow its net loss by over 30% to Rs 194 crore in FY24 from Rs 290.4 crore in FY23. Its operating revenue has also risen by 69% to Rs 296.9 crore from Rs 175.6 crore in the same period.
The decision to go public by BlackBuck comes at a time when there is a surge in IPOs in the Indian market. This includes major companies like ixigo, Ola Electric, FirstCry, and Go Digit, among others, which have already completed their IPOs this year.
The much-anticipated public listing of Swiggy is also expected to happen this year, along with that of Ather Energy, MobiKwik, among others.
