Zinka Logistics Solutions Ltd files draft papers to raise funds via IPO

Zinka Logistics Solutions Ltd, a digital platform for truck operators, has filed preliminary papers with markets regulator Sebi to mop up funds through an initial share sale.

The initial public offering (IPO) of the company is a mix of fresh issuance of Rs 550 crore and an offer for sale of up to 2.16 crore equity shares by promoters and investors selling shareholders, the Bengaluru-based firm said in a statement.

According to the Draft Red Herring Prospectus (DRHP), promoters -- Rajesh Kumar Naidu Yabaji, Chanakya Hridaya and Ramasubramanian Balasubramaniam -- and investors -- Accel India IV (Mauritius) Ltd, Quickroutes International Pvt Ltd, International Finance Corporation, Sands Capital Private Growth II Ltd, GSAM Holdings LLC, Accel Growth Fund V L.P. and Internet Fund III Pte Ltd -- are selling their shares under the offer for sale component.

The IPO also includes a reservation for subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion, the statement said.

In consultation with book-running lead managers, the company said it may consider a pre-IPO placement shall not exceed 20 per cent of the size of the fresh issue.

If such placement is completed, the fresh issue size will be reduced, it added.

The proceeds from its fresh issuance to the extent of Rs 200 crore will be utilised for funding towards sales and marketing costs, Rs 140 crore for investment in Blackbuck Finserve Pvt Ltd for financing the augmentation of its capital base to meet its future capital requirements, and Rs 75 crore for funding of expenditure in relation to product development and general corporate purposes.

As of March 31, 2024, Zinka Logistics had 1,783 permanent employees and 3,638 contract workers. By fiscal 2024, the company had grown its fleet to 9,63,345 truck operators, up from 4,82,446 in fiscal 2022, representing 27.52 per cent of India's truck operators.

Axis Capital Ltd, Morgan Stanley India Company Pvt Ltd, JM Financial Ltd and IIFL Securities Ltd are book-running lead managers to the issue. KFin Technologies Ltd is the registrar to the offer.

The company's shares are proposed to be listed on the BSE and NSE.