Logistics Unicorn BlackBuck to Launch Initial Public Offering on November 13

Disclaimer: This article is for informational purposes only and does not constitute financial advice or an endorsement of investment in BlackBuck’s IPO. Investors are encouraged to conduct their own research and consult financial professionals before making investment decisions.

IPO Overview and Key Date

Flipkart-backed logistics company BlackBuck is set to launch its initial public offering (IPO) on November 13, closing on November 18. With a price band of INR 259 to INR 273 per share, BlackBuck’s parent company, Zinka Logistics, is valued at around INR 4,818 crore—36% lower than its previous valuation of INR 7,500 crore in 2021.

IPO Structure and Fundraising Goals

The IPO comprises a fresh issue of shares worth INR 550 crore and an offer for sale (OFS) of up to 20.6 million shares, with a potential total raise of INR 1,114.7 crore. Investors can place bids starting at 54 shares, with additional bids in multiples of 54.

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Key Shareholders and Shareholding Structure

Promoters Rajesh Yabaji, Chanakya Hridaya, and Ramasubramanian Balasubramaniam will divest approximately 4.4 million shares, retaining a 29% stake post-IPO. Major shareholders Accel, Peak XV Partners, Flipkart’s subsidiary Quickroutes International, and the International Finance Corporation (IFC) will also participate in the OFS.

Company Background and Market Position

Founded in 2015, BlackBuck operates India’s largest online trucking marketplace for inter-city full truck load (FTL) transportation. The company’s platform offers a range of services, including payments, telematics, and vehicle financing. BlackBuck holds a significant market share, with 27.5% of India’s truck operators on its platform, and generates revenue through subscriptions and commissions.

Financial Performance and Growth Trajectory

For FY24, BlackBuck’s revenue grew by 68% to INR 297 crore, while its net loss narrowed from INR 237 crore to INR 167 crore. In Q1 FY25, the company reported a net profit of INR 28.67 crore, a positive shift from a loss of INR 35.93 crore in the same quarter last year. The company’s operating revenue also rose by 55% in this period.

Strategic Shift and Use of Proceeds

BlackBuck recently sold its corporate freight business to Zast Logisolutions, focusing on the smaller, fragmented truck operator segment. IPO proceeds are earmarked for strategic investments, including INR 140 crore for BlackBuck Finserv, its NBFC subsidiary, which will facilitate loan origination for truck operators. The largest allocation, INR 200 crore, will go toward sales and marketing, with remaining funds supporting product development and general corporate purposes.

Anchor Investor Day

The anchor book for BlackBuck’s IPO is set to open on November 12, one day prior to the public issue.

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