Zinka Logistics Solution share price: What does GMP suggest ahead of listing?

Zinka Logistics Solution shares are set to make their market debut on Dalal Street amid volatility and cautious market sentiment.
The last few IPOs that have listed on the stock exchanges have not been able to give investors strong listing gains and the public offering of Zinka Logistics Solution might also see a weak or decent debut.
Founded in 2015, Zinka operates the BlackBuck App, a digital platform offering truck operators services like payments, telematics, a load marketplace, and vehicle financing.
The IPO of Zinka Logistics Solution, held from November 13-18, offered shares at a price band of Rs 259-273 per share with a lot size of 54 shares. The company raised Rs 1,114.72 crore, comprising Rs 500 crore via fresh issue and Rs 564.72 crore through an offer-for-sale.
The IPO saw an overall subscription of 1.86 times, with strong demand from employees (9.88 times) and QIBs (2.76 times). Retail investors subscribed 1.66 times, while the NII category lagged at 24%.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd said that while the IPO has received a decent subscription of 1.87 times, the current grey market premium (GMP) of 0% indicates a potential for a flat or even negative listing.
“The company’s strong network effects and position as a leading platform in the logistics industry are positive factors. However, financial challenges, including ongoing losses and negative cash flow, raise concerns. Additionally, the company’s legal challenges and recent employee layoffs indicate operational difficulties. The low promoter holding further adds to investor skepticism. Given the company’s financial performance, operational challenges, and the lack of a clear valuation metric, investors are advised to exercise caution,” she added.
The grey market premium (GMP) for Zinka Logistics has dropped to zero, signalling a weak listing for investors. Earlier, the GMP stood at Rs 24 before the IPO opened. Shares are scheduled to list on the NSE and BSE on Friday, November 22.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)