Blackbuck Gears Up for IPO in 2024

Blackbuck, a leading online platform for truckers, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO). The company aims to raise capital through a combination of issuing new equity shares (fresh issue) and selling existing shares held by its investors (offer for sale or OFS). The fresh issue is expected to generate up to Rs 550 crore, while the total OFS volume could reach 2,16,09,022 equity shares.

Investor Participation in Share Sale

 Several prominent investors will be offloading a portion of their holdings during the OFS. Accel, the largest shareholder with a 17.07% stake, plans to divest 24.2% of its total ownership, translating to 52,32,632 shares. Other notable investors like Quickroutes International (12.97% stake), International Finance Corporation (IFC), and Tiger Global will also participate in the OFS, offering 3,973,898, 3,973,898, and 1,711,962 shares, respectively.

Pricing and Allotment Details

The face value of both the fresh issue and OFS shares will be Re 1. The company, in consultation with its book-running lead managers (Axis Capital, IIFL Securities, Morgan Stanley, and JM Financial), will determine the price band and minimum investment lot size closer to the IPO date.

Company Background and Performance

Established in 2015, Blackbuck has carved a niche in the logistics sector by providing truck operators with a comprehensive suite of services. This includes solutions for payments, telematics, load matching, and even vehicle financing, empowering them to run their businesses more efficiently. The company boasts an impressive annual transaction volume of 9,63,345 truck operators on its platform.

Financial Highlights and Growth Trajectory

Blackbuck has gotten more than $350 million in financing to date, with a key achievement being its $67 million Series E round drove by Clan Capital, IFC Arising Asia Asset, and VEF. This financing round pushed the Flipkart-maneuvered organization into the sought after “unicorn club” of new companies esteemed at more than $1 billion.

Blackbuck’s monetary exhibition shows guarantee. According to the DRHP, the organization’s income from tasks saw a huge 68.8% development in FY24, arriving at Rs 297 crore. While the organization stays unfruitful, it has shown progress in restricting its misfortunes. FY24 saw a 33% decrease in misfortunes contrasted with FY23, with a detailed loss of Rs 194 crore, down from Rs 290 crore the earlier year.

It’s quite significant an adjustment of Blackbuck’s income acknowledgment strategy for the beyond two monetary years. Recently detailed incomes for FY23 and FY22 were Rs 704 crore and Rs 833 crore, separately.

Industry Landscape and Potential Impact

Blackbuck is ready to turn into the second operations startup to make a big appearance on the Indian stock trade, following SoftBank-moved Delhivery’s fruitful Initial public offering in May 2022. While contender Ecom Express as of late picked to raise $172 million through a rights issue, deferring its Initial public offering plans, Blackbuck’s move towards a public posting implies developing financial backer trust in the web-based planned operations area.