Bengaluru-based Zinka Logistics filed draft red herring prospectus papers with SEBI for an IPO on July 08. 

The IPO will offer a combination of fresh issue as well as an offer for sale, in which promoters will be selling 21.61 million equity shares. The company will collect Rs 550 crore from the fresh issue.

Zinka Logistics is India’s largest digital platform of truck operators (in terms of number of users). More than 9.63 lakh truck operators in the country transacted on the platform in FY24, which comprises 27.52% of India’s truck operators, said the company quoting RedSeer report. Using Zinka’s platform, customers (primarily comprising truck operators) digitally manage payments for tolling and fueling, monitor drivers and fleets using telematics, find loads on the marketplace, and get access to financing for the purchase of used vehicles.

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According to the company, the proceeds raised through fresh issue will be used to fund sales and marketing costs, Rs 200 crore. Also, Rs 140 crore will be invested in Blackbuck Finserve for financing the augmentation of its capital base to meet its future capital requirements. Funding of expenditure in relation to product development will be done by Rs 75 crore. While the remaining Rs 75 crore will be used for general corporate purposes.

Pre-IPO Placement

The company is in talks with book-runners to consider pre-IPO placement. If approved then it will not be more than 20% of the fresh issue. After which, the size of the fresh issue will be reduced. 

BRLMs and Registrar

Axis Capital, Morgan Stanley India Company, JM Financial, and IIFL Securities are the book-running lead managers to the issue of Zinka Logistics, while KFin Technologies is handling the work of the registrar of the issue.