Zinka Logistics Solutions
MainboardNSE₹1,115 Cr issue
+2.22%
Listing gain over issue price
Issue size
₹1,115 Cr
1 lot at cut-off
₹14,742
Lot size
54shares
Open
13 Nov 2024
Close
18 Nov 2024
Allotment
19 Nov 2024
Listing
22 Nov 2024
Listing performance
Issue price
₹273
Listed at
₹279.05
Listing-day close
₹260.20
Latest price
₹543.45
Close on 23 Oct 2026
Listing gain
+2.22%
Return since issue
+99.07%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Nov 2024 – 18 Nov 2024
- Listing date
- 22 Nov 2024
- Face value
- ₹1 per share
- Issue price
- ₹273 per share
- Lot size
- 54 shares
- Listing at
- NSE
- Total issue size
- ₹1,115 Cr
- Market cap at offer price
- ₹4,818 Cr
- Promoter holding
- 32.91% → 26.83% pre-issue → post-issue
- ISIN
- INE0UIZ01018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- Vaswani Presidio, no.84/2, II Floor, Panathur Main Road, Kadubeesanahalli, Off Outer Ring-Road, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,83,63,915 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 54 shares per lot, in multiples, at ₹273
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 54 | ₹14,742 |
| Retail (max) | 13 | 702 | ₹1,91,646 |
| S-HNI (min) | 14 | 756 | ₹2,06,388 |
| S-HNI (max) | 67 | 3,618 | ₹9,87,714 |
| B-HNI (min) | 68 | 3,672 | ₹10,02,456 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,83,63,915
Anchor portion
₹501 Cr
at ₹273 per share
Valuation and performance
Valuation at offer price
₹273 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | −12.41 | 7.34 |
| P/E (×) | — | 37.19 |
| Price to book (×) | 14.60 | — |
| Market cap | — | ₹4,818 Cr |
No price-to-earnings multiple is shown: the company reported a loss, and an earnings multiple struck on negative earnings would read as a cheap valuation while meaning the opposite.
Key performance indicators
Latest reported period
- Return on net worth
- 9.39%
- ROCE
- 1.50%
- Debt / equity
- 0.47
- NAV per share
- ₹18.70
- Price to book
- 14.60
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Zinka Logistics Solutions
Zinka Logistics Solutions Limited, incorporated in 2015 and converted to public limited company in June 2024, operates India's largest digital logistics platform by number of truck operator users. As of Fiscal 2024, 963,345 truck operators transacted on the platform, representing 27.52% of India's truck operators. The company generates revenue through four primary streams: payments (tolling and fueling commissions from bank and oil company partners), telematics subscriptions (vehicle tracking and fleet management), loads marketplace (shipper subscriptions and freight brokerage), and vehicle financing. In Fiscal 2024, the company generated ₹2,969.22 million in revenue from continuing operations, with payments and telematics contributing 94.53% of total revenue. The company operates through subsidiaries including Blackbuck Finserve Private Limited (BFPL), TZF Logistics Solutions Private Limited (TZF), and ZZ Logistics Solutions Private Limited (ZZ Logistics). It divested its corporate freight business via slump sale in August 2024.
Company Analysis
from RHPZinka Logistics Solutions Limited is India's largest digital platform for truck operators (27.52% market share), providing payments solutions (tolling and fueling), telematics (vehicle tracking), loads marketplace, and vehicle financing services.
Zinka Logistics Solutions Limited, incorporated in 2015 and converted to public limited company in June 2024, operates India's largest digital logistics platform by number of truck operator users. As of Fiscal 2024, 963,345 truck operators transacted on the platform, representing 27.52% of India's truck operators. The company generates revenue through four primary streams: payments (tolling and fueling commissions from bank and oil company partners), telematics subscriptions (vehicle tracking and fleet management), loads marketplace (shipper subscriptions and freight brokerage), and vehicle financing. In Fiscal 2024, the company generated ₹2,969.22 million in revenue from continuing operations, with payments and telematics contributing 94.53% of total revenue. The company operates through subsidiaries including Blackbuck Finserve Private Limited (BFPL), TZF Logistics Solutions Private Limited (TZF), and ZZ Logistics Solutions Private Limited (ZZ Logistics). It divested its corporate freight business via slump sale in August 2024.
logisticstransportationfintechfleet managementdigital platforms
Objects of the Issue
- Funding towards sales and marketing costs ₹2,000.00 million p.25
- Investment in Blackbuck Finserve Private Limited for financing the augmentation of its capital base to meet its future capital requirements ₹1,400.00 million p.25
- Funding of expenditure in relation to product development ₹750.00 million p.25
- General corporate purposes p.25
- Investment in BlackBuck Finserve Private Limited (NBFC subsidiary) for capital augmentation ₹1,400.00 million p.44
- Sales and marketing initiatives p.47
- General corporate purposes p.121
- Funding towards sales and marketing costs ₹2,000.00 million p.124
- Investment in Blackbuck Finserve Private Limited, our NBFC subsidiary, for financing the augmentation of its capital base to meet its future capital requirements ₹1,400.00 million p.124
- Funding of expenditure in relation to product development ₹750.00 million p.124
- General corporate purposes p.124
Issue Structure
- Total Issue
- Up to [●] Equity Shares of face value of ₹1 each aggregating up to [●] million
- Fresh Issue
- Up to [●] Equity Shares of face value of ₹1 each aggregating up to ₹5,500.00 million
- Offer for Sale
- Up to 20,685,800 Equity Shares of face value of ₹1 each aggregating up to [●] million
- Price Band
- [●] (Floor Price) to [●] (Cap Price) per Equity Share
- Lot Size
- [●] Equity Shares of face value of ₹1 each and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹1 each
Business Model
Revenue generation through commission income from FASTag bank partners on toll transaction flow-through (33.51% of Fiscal 2024 revenue from one bank partner); commission margins from oil marketing companies (OMCs) in fueling transaction flow-through; subscription fees charged to truck operators for telematics and loads marketplace services; subscription fees charged to shippers; and interest income, loan service fees charged to borrowers. Commission income represented 42.86% of Fiscal 2024 continuing operations revenue and subscription fees 39.70%.
Business Segments
Commission income from FASTag bank partners on toll transaction flow-through and commission margins from oil marketing companies (OMCs) in fueling transaction flow-through
Vehicle tracking and fuel monitoring solutions providing real-time fleet visibility, route optimization, and fuel management through subscriptions
Platform enabling shippers to post available loads and truck operators to find loads; includes subscription fees from shippers and freight brokerage services
Interest income, loan service fees and other fees charged to borrowers for vehicle financing arrangements
Subscription fees charged to truck operators for platform services and subscriptions charged to shippers
Platform for toll collection via FASTag, earning commission on transactions in partnership with FASTag Partner Banks
Distribution of fuel cards from OMC Partners; earns commissions based on monthly consumption volume or transaction value of fuel purchased
Financing of commercial vehicles through BlackBuck Finserve NBFC subsidiary for truck operators; earns service fees and interest income
Digital platform matching truck operators needing loads with shippers looking for trucks; earns subscription fees
Digital payments platform for toll and fuel transactions; customers recharge FASTags and fuel payment instruments through the BlackBuck App
Fleet and driver monitoring services enabling truck operators to track and manage their vehicles and drivers
Digital marketplace connecting truck operators to find loads
Financing solutions enabling truck operators to purchase used commercial vehicles or refinance existing vehicles, offered through NBFC subsidiary Blackbuck Finserve Private Limited in own-book model and through partnerships
Provides tolling and fueling payment solutions. Tolling solution distributes FASTags in partnership with FASTag Partner Banks. Fueling solution offers cashless fuel payments through digital and physical cards issued in partnership with Oil Marketing Companies (OMCs).
Offers vehicle tracking and fuel monitoring solutions for truck operators. Provides real-time visibility into fleet movements, driver behavior monitoring, route optimization, enhanced fuel management, theft protection, and geo-fence-based alerts. Maintains a network of over 1,050 on-ground technicians.
Digital platform connecting truck operators with shippers through two offerings: (1) Listing marketplace where shippers post loads on BB Transporter App and algorithms match available trucks with suitable pricing; (2) Freight brokerage (launched January 2024) where BlackBuck handles end-to-end logistics transactions and acts as intermediary between shippers and truck operators.
Enables truck operators to purchase used commercial vehicles or obtain financing on existing vehicles. Operates through two models: (1) Partnership model where BlackBuck sources borrowers and assists with loan execution on behalf of financial partners (92.69% of disbursements); (2) Own book model through wholly-owned NBFC subsidiary BlackBuck FinServe Private Limited (7.31% of disbursements).
Provides customers with a platform to hire trucks, lorries, containers, cold storage vehicles, and other motor vehicles through electronic means including internet, mobile applications, and e-commerce platforms
Solicits and procures insurance business and acts as a corporate agent in respect of all classes of insurance
Develops, operates and maintains platforms for buying, selling and trading of new, used or second-hand automobiles including trucks through auctions, classified, fixed price and other formats; provides consultancy, financing facilitation and coordination services; and engages in reconditioning, repairing and remodelling of vehicles
Blackbuck Finserve Private Limited, a wholly-owned subsidiary, is engaged in the business of financing various kinds of assets including plant, machinery, vehicles, buses and lorries; received NBFC license in 2023
Carries on the business of facilitating information flow on financial services including online financial services for all kinds of loans, insurance and investment products
Comprises commission income from OMCs and banks, subscription fees for telematics and platform services, service fees from Fastagissuance/activation/installation, transaction fees, marketplace access, sourcing, loan servicing and collection fees, and telematics device servicing
Interest income from loans disbursed by NBFC subsidiary Blackbuck Finserve Private Limited to customers
The Group was in the business of corporate freight which, consequent to a strategic decision, was sold to a third party subsequent to the three months ended June 30, 2024
Digital platforms enabling truck operators to manage payments for tolling and fueling, monitor drivers and fleets using telematics, find loads on marketplace platform, and access financing for vehicle purchases
Non-banking financial company licensed operations providing access to credit to truck operators for vehicle purchases
Provides digital platform services to truck operators including payments processing for tolling and fueling, telematics fleet management and vehicle tracking, load marketplace for capacity optimization, and vehicle financing services
Non-banking financial company (NBFC) subsidiary BlackBuck FinServe provides loans to customers for purchase of used commercial vehicles; commenced operations in October 2023 after receiving non-deposit-taking NBFC license on August 1, 2023
SWOT Analysis
Strengths
- • Largest digital platform for truck operators with significant market share(p.24)
- • Diversified revenue streams across multiple offerings(p.44)
- • Strong growth trajectory in user base and revenue(p.43)
- • Returned to profitability in recent quarter(p.26)
- • Largest digital platform for truck operators in India by user count(p.136)
- • Extensive geographic and tolling network coverage(p.136)
- • Strong network effects and customer retention with robust platform architecture(p.136)
- • Scalable in-house technology developed specifically for truck operators(p.136)
- • Repeatable playbook for creating and launching new products(p.136)
- • Omnichannel distribution network with extensive physical and digital touchpoints(p.136)
- • High growth business with asset-light model and strong unit economics(p.136)
- • Experienced promoter-led management team with deep industry expertise(p.136)
- • Largest digital platform for truck operators by user base with 27.52% market penetration(p.167)
- • Market leader in payments with 32.92% GTV market share in tolling for truck operators(p.178)
- • Largest fuel loyalty management platform for truck operators with 72% fuel station coverage(p.180)
- • Extensive omnichannel physical distribution network covering 80% of India's districts(p.168)
- • Strong revenue growth with 69% YoY growth in Fiscal 2024 and high contribution margins of 91.10%(p.169)
- • High customer retention and engagement with 62.04% of annual operators transacting monthly(p.172)
- • One of largest vehicle tracking players with 356,050 average monthly active telematics devices in FY24(p.182)
- • Integrated multi-service platform reducing customer acquisition costs and driving cross-selling(p.163)
- • Digital platforms for truck operators with comprehensive service offerings(p.349)
- • Newly licensed NBFC subsidiary enabling lending business expansion(p.349)
- • Strong liquidity position with substantial cash reserves(p.340)
- • Loan portfolio for truck operators with low impairment rates(p.304)
- • Ability to optimize capital structure through divestment(p.349)
- • Largest digital platform for truck operators by user base(p.358)
- • Strong customer engagement and retention metrics(p.359)
- • Significant physical distribution network across India(p.359)
- • High contribution margins demonstrating operational efficiency(p.362)
- • Strong revenue growth across all service lines(p.366)
- • Market leadership in vehicle telematics(p.361)
- • Diversified revenue streams reducing customer concentration risk(p.381)
Weaknesses
- • History of losses and negative cash flows(p.27)
- • High dependence on few key business partners for majority of revenues(p.27)
- • Heavy reliance on short-term supplier agreements with no long-term contracts(p.27)
- • Concentrated supplier base geographically(p.42)
- • High sales and marketing expenditure relative to revenue(p.40)
- • Recent undisclosed equity transfers to promoter(p.39)
- • History of delays in RBI filing compliance(p.44)
- • Newly established NBFC subsidiary with no operating history(p.44)
- • Significant dependence on third-party service providers(p.45)
- • Heavy reliance on a few key business partners(p.45)
- • High employee attrition rates(p.54)
- • Statutory compliance lapses and delays(p.53)
- • MCA filing violations related to director appointments(p.53)
- • Litigation exposure from multiple parties(p.57)
- • Historical losses and negative return on equity(p.138)
- • Limited profitability with declining or negative earnings per share(p.137)
- • NBFC subsidiary (BFPL) is nascent with low AUM and limited operational history(p.128)
- • Dependency on truck operators' willingness to use digital platform services(p.40)
- • Past non-compliance with RBI filing requirements with compounding penalties(p.40)
- • Dependence on two major FASTag Partner Banks for 62.13% of revenues in Fiscal 2024(p.179)
- • Vehicle financing offering exposes company to high-risk borrowers with limited credit history(p.185)
- • Limited experience in vehicle financing vertical making growth prospects difficult to assess(p.185)
- • Loads marketplace in early monetization stage with limited revenue generation currently(p.170)
- • Heavy reliance on ground touchpoints and workforce creates significant operational complexity(p.175)
- • Regulatory compliance burden on NBFCs(p.201)
- • Requirement for disaster recovery drills and business continuity plans(p.201)
- • Restrictions on digital lending fee structures(p.201)
- • Data protection and privacy obligations under DPDP Act(p.207)
- • Significant accumulated losses from continuing operations(p.347)
- • High employee benefits expenses relative to revenue(p.347)
- • Substantial impairment losses on corporate freight trade receivables(p.302)
- • Audit trail and data backup compliance gaps(p.328)
- • Dependence on single major customer(p.315)
- • Significant historical operating losses affecting profitability(p.354)
- • Negative return on equity in recent years(p.354)
- • Dependence on key business partners for significant revenue(p.381)
- • Dependence on limited suppliers for telematics equipment(p.381)
- • Business disruption risk from loss of key partners(p.381)
Opportunities
- • Expanding Indian trucking market with significant growth potential(p.24)
- • Market fragmentation creating demand for digital solutions(p.24)
- • Cross-selling opportunities through expanding service offerings(p.43)
- • Planned investment in sales, marketing and product development(p.25)
- • Expansion of vehicle financing offerings(p.44)
- • Investment in sales and marketing initiatives(p.46)
- • Expansion through acquisition and strategic initiatives(p.63)
- • Expansion of sales and marketing to grow user acquisition and market penetration(p.127)
- • Investment in product development to enhance offerings and maintain innovation leadership(p.130)
- • Augmentation of NBFC subsidiary capital base to expand vehicle financing(p.128)
- • Cross-selling opportunities through platform's multi-service ecosystem(p.139)
- • Monetization through data and technology insights across truck operator ecosystem(p.130)
- • Indian trucking industry projected to grow at 8-9% CAGR from Fiscal 2024 to Fiscal 2028(p.151)
- • Telematics market penetration expected to rise from 40-45% to 65-70% by Fiscal 2028(p.177)
- • Advanced telematics (fuel sensors, dashcams) penetration below 1% with global benchmarks at 20%(p.182)
- • Digital freight platform penetration less than 2% offering substantial growth runway(p.161)
- • Used commercial vehicle financing market with 55-60% unorganized, offering consolidation opportunity(p.161)
- • Expanding ecosystem opportunities in insurance, repairs, spare parts, and truck buying/selling(p.162)
- • Government digitization initiatives (FASTags, e-way bills, AIS-140) creating favorable regulatory environment(p.153)
- • Expansion of lending business through NBFC operations(p.304)
- • Growth in truck operator services segment(p.315)
- • Investment in buyer company equity for long-term value creation(p.321)
- • Leverage strategic divestment to strengthen balance sheet(p.351)
- • Potential to improve profitability post-divestment(p.349)
- • Growing digitalization of India's fragmented logistics sector(p.358)
- • Expansion of telematics and fleet management services(p.361)
- • Vehicle financing growth as core business offering(p.359)
- • Deepening penetration and multi-service adoption among existing customers(p.360)
- • Significant growth in gross transaction value from payments offering(p.361)
Threats
- • High concentration risk in revenue sources(p.27)
- • Regulatory and policy changes in tolling and payments sector(p.42)
- • Supply chain and international trade risks(p.42)
- • Geographic concentration risk in supplier base(p.42)
- • Competitive pressure and customer retention challenges(p.43)
- • Risk of partner termination affecting revenue stability(p.40)
- • Regulatory reduction in program management fees(p.44)
- • Uncertainty around GNSS toll collection implementation(p.45)
- • Regulatory risk from RBI oversight of business arrangements(p.46)
- • Risk of partner termination without cause(p.46)
- • Fuel price volatility affecting revenue(p.50)
- • Intense competitive pressures in fleet payments and financing(p.61)
- • Monsoon seasonality impacting business(p.60)
- • Macroeconomic slowdown risks(p.65)
- • Global economic uncertainty and commodity price volatility(p.65)
- • Intense competition in digital logistics and fintech platforms(p.40)
- • Regulatory changes affecting tolling, fueling, telematics, and financing businesses(p.40)
- • Economic cyclicality and downturn in commercial vehicle and transport sector(p.40)
- • Dependency on technology infrastructure and cybersecurity risks(p.40)
- • Foreign exchange and interest rate fluctuations affecting borrowings and operations(p.40)
- • Concentration of users in specific geographies and dependence on limited truck operator segments(p.128)
- • Highly competitive payments landscape with established banks and NBFCs competing for market share(p.165)
- • Strong traditional NBFCs with proven underwriting models and extensive physical presence competing(p.165)
- • Government impetus for railway development may reduce long-term dependence on trucking(p.165)
- • Low digital literacy of truck operators creates adoption challenges for new solutions(p.152)
- • Entrenched local broker networks create significant barriers to loads marketplace scaling(p.165)
- • Regulatory changes to FASTag commission rates could impact tolling revenue predictability(p.179)
- • Telecom regulatory changes affecting operations(p.204)
- • RBI regulatory framework for NBFCs(p.202)
- • NPA classification and provisioning requirements(p.202)
- • Consumer protection litigation risk(p.205)
- • IT security and cyber risk obligations(p.206)
- • High credit risk on collected corporate freight receivables(p.302)
- • Exposure to interest rate risk on variable rate borrowings(p.307)
- • Dependence on bank financing and working capital facilities(p.306)
- • Liquidity risk tied to committed credit facilities(p.306)
- • Exposure to deferred consideration receivable from divestment buyer(p.321)
- • Business subject to macroeconomic conditions affecting freight volumes(p.361)
- • Dependence on fuel price movements impacting revenues(p.361)
- • Seasonal demand fluctuations in logistics business(p.381)
- • Risk of changes in partner terms affecting revenues(p.361)
- • Risk from supply chain disruptions affecting core offerings(p.381)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajesh Kumar Naidu Yabaji | Promoter | 14.45% | — |
| Chanakya Hridaya | Promoter | 9.42% | — |
| Ramasubramanian Balasubramaniam | Promoter | 8.91% | — |
| Rajesh Kumar Naidu Yabaji | Promoter | — | — |
| Chanakya Hridaya | Promoter | — | — |
| Ramasubramanian Balasubramaniam | Promoter | — | — |
| Rajesh Kumar Naidu Yabaji | Promoter | 15.07% | — |
| Chanakya Hridaya | Promoter | 9.83% | — |
| Ramasubramanian Balasubramaniam | Promoter | 9.29% | — |
| Rajkumari Yabaji | Promoter Group | 0.13% | — |
| Rajesh Kumar Naidu Yabaji | Promoter | 14.45% | — |
| Chanakya Hridaya | Promoter | 9.42% | — |
| Ramasubramanian Balasubramaniam | Promoter | 8.91% | — |
| Rajesh Kumar Yabaji Naidu | Promoter | 31.31% | — |
| Chanakya Hridaya | Promoter | 31.32% | — |
| Balasubramaniam Ramasubramaniam | Promoter | 31.31% | — |
| Balasubramaniam Ramasubramaniam | Executive Director | — | — |
| Rajesh Kumar Yabaji Naidu | Executive Director | — | — |
| Chanakya Hridaya | Executive Director | — | — |
| Rajesh Kumar Naidu Yabaji | Promoter/Promoter Group | — | — |
| Chanakya Hridaya | Promoter/Promoter Group | — | — |
Leadership
Rajesh Kumar Naidu Yabaji · Chairman, Managing Director and Chief Executive Officer
Satyakam GN · Chief Financial Officer
Barun Pandey · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Zinka Logistics Solutions IPO FAQs
What is the lot size of Zinka Logistics Solutions IPO?
The minimum lot size of Zinka Logistics Solutions IPO is 54 shares. One lot costs ₹14,742 at the cut-off price.
When does Zinka Logistics Solutions IPO open and close?
Zinka Logistics Solutions IPO opened for subscription on 13 Nov 2024 and closed on 18 Nov 2024.
What is the listing date of Zinka Logistics Solutions IPO?
Zinka Logistics Solutions IPO listed on 22 Nov 2024.