BlackBuck IPO trades at premium in grey market before launch

The unlisted shares of Zinka Logistics Solutions, the parent company of the digital platform BlackBuck, continue to trade at a premium in the grey market ahead of its highly anticipated initial public offering (IPO) set to open on Wednesday, November 13, 2024.

BlackBuck IPO trades at premium in grey market before launch

Sources monitoring grey market activities report that BlackBuck shares are trading at a premium of Rs 24 over the upper price band of the IPO, reflecting a grey market premium (GMP) of 8.79%. A positive GMP generally indicates strong market sentiment towards the upcoming public offering. According to the Red Herring Prospectus (RHP), BlackBuck aims to raise Rs 1,114.72 crore from the IPO at the upper price band. The offering consists of a fresh issue of 20,146,520 shares and an offer for sale (OFS) of 20,685,800 shares, each with a face value of Re 1.

Backers of the IPO

Promoters Rajesh Kumar Naidu Yabaji, Ramasubramanian Balasubramaniam, and Chanakya Hridaya, along with investors like Quickroutes International, Accel India IV (Mauritius), International Finance Corporation, Internet Fund III, Peak XV Partners Investments VI (formerly SCI Investments VI), VEF AB (publ), and Sands Capital Private Growth II, will divest their stakes through the IPO. The BlackBuck IPO is being offered within a price band of Rs 253-273, with a lot size of 54 shares. Retail investors can bid for a minimum of 54 shares, requiring an investment of Rs 14,742 for one lot. For Small Non-Institutional Investors (sNII), the minimum lot size is 14 lots (756 shares), totaling Rs 206,388, while for Big Non-Institutional Investors (bNII), the minimum lot size is 68 lots (3,672 shares), amounting to Rs 1,002,456.