Are you ready for an action-packed week in the stock market? This week, three IPOs are set to open, aiming to raise a total of ₹1,160 crores, with Blackbuck leading the way in the mainboard category, targeting ₹1,114.72 crores. Meanwhile, two SME IPOs — Mangal Compusolution and Onyx Biotec — seek to raise ₹16.23 crores and ₹29.34 crores, respectively.
Not only will investors have these new opportunities, but four highly anticipated listings, including Swiggy, will also hit the bourses, offering a fresh wave of excitement. Let’s look into the details to see what these IPOs and listings store for investors this week.
Blackbuck IPO
The BlackBuck IPO is structured as a book-built issue, seeking to raise a total of ₹1,114.72 crores. This includes a fresh issue of 2.01 crore shares worth ₹550 crores and an offer for sale (OFS) of 2.07 crore shares amounting to ₹564.72 crores. Investors are required to apply for a minimum lot size of 54 shares. The final allotment is expected on November 19, 2024, with a tentative listing date set for November 21, 2024, on the BSE and NSE.
Blackbuck (Zinka Logistics Solutions Ltd) IPO
| Offer Price | ₹259 to ₹273 per share |
| Face Value | ₹1 per share |
| Opening Date | 13 November 2024 |
| Closing Date | 18 November 2024 |
| Total Issue Size (in Shares) | 40,832,320 shares |
| Total Issue Size (in ₹) | ₹1,114.72 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 54 Shares |
| Listing at | BSE, NSE |
Objectives of the Blackbuck IPO
The funds raised through the IPO will be utilized for:
- Sales and marketing expenses
- Capital infusion into its NBFC subsidiary, Blackbuck Finserve
- Product development
- General corporate purposes
GMP (Grey Market Premium)
As of November 11, 2024, BlackBuck’s IPO has a GMP of ₹24. Given the IPO’s upper price band of ₹273 per share, the expected listing price is approximately ₹297, reflecting a potential gain of 8.79% per share. The GMP is subject to market sentiment, and investors may find this indicator useful for estimating the stock’s initial market interest.
Company Overview
Founded in April 2015, Zinka Logistics Solution Limited, through its BlackBuck app, provides a comprehensive digital platform for truck operators in India. BlackBuck connects 963,345 truck operators, representing 27.52% of India’s trucking market, facilitating streamlined logistics and transportation services. The app offers various services, including payments, telematics, a freight marketplace, and vehicle financing, empowering truck operators to optimize their business operations.
Regarding financial transactions, BlackBuck processed a Gross Transaction Value (GTV) of ₹173,961.93 million in payments as of March 31, 2024. The platform also had an average of 356,050 active telematics devices each month, indicating widespread adoption of its fleet management solutions. Additionally, BlackBuck facilitated 4,035 loans valued at ₹1,967.88 million for vehicle financing across 48 districts in seven Indian states, extending crucial financial support to its users.
SWOT Analysis of Zinka Logistics Solutions Ltd.
| STRENGTHS | WEAKNESSES |
| Market Leadership: BlackBuck is India’s largest digital platform for truck operators, commanding a significant market share and a vast network. Diverse Offerings: Its range of services, from telematics to vehicle financing, addresses the varied needs of truck operators, enhancing customer loyalty. Financial Growth: Strong revenue and PAT growth highlight the company’s scalable business model and financial stability. | Reliance on the Indian Market: BlackBuck’s operations are concentrated in India, and its growth is tied to the local logistics sector, limiting global expansion potential. High Customer Acquisition Costs: Increasing sales and marketing expenditure, a key IPO objective, indicates higher customer acquisition costs in a competitive market. |
| OPPORTUNITIES | THREATS |
| Expanding Digital Adoption: As the Indian logistics industry undergoes digitization, BlackBuck has significant opportunities to increase its user base and product offerings. Growth in Financing Services: Demand for vehicle financing and other NBFC services offers BlackBuck the potential for diversification and revenue growth. | Regulatory Risks: Changes in financial and logistics regulations could impact BlackBuck’s business operations and revenue streams. Competition: Increased competition in logistics and digital platforms could challenge BlackBuck’s market share, affecting profitability. |
Financial Strength
The company’s financials reflect strong growth. Between FY 2023 and FY 2024, Zinka Logistics Solution Limited reported a 62.24% increase in revenue and a 33.24% rise in profit after tax (PAT). This growth demonstrates BlackBuck’s expanding market footprint and its capacity to leverage operational efficiencies for profitability.
Mangal Composolution Ltd IPO
The Mangal Compusolution IPO is a fixed-price issue, aiming to raise ₹16.23 crores entirely through a fresh issue of 36.06 lakh shares. This IPO, set to be listed on the BSE SME platform, has a minimum lot size of 3,000 shares, making the minimum investment required for retail investors ₹135,000. High Net-worth Individuals (HNI) must invest in at least two lots (6,000 shares), totaling ₹270,000. The allotment of shares for this IPO is expected on November 18, 2024, with a tentative listing date of November 20, 2024.
| Offer Price | ₹45 per share |
| Face Value | ₹10 per share |
| Opening Date | 12 November 2024 |
| Closing Date | 14 November 2024 |
| Total Issue Size (in Shares) | 3,606,000 shares |
| Total Issue Size (in ₹) | ₹16.23 Cr |
| Issue Type | Fixed Price Issue IPO |
| Lot Size | 3000 Shares |
| Listing at | BSE, SME |
Objectives of the Mangal Composolution IPO
The funds raised from the Mangal Compusolution IPO will be used for:
- Capital expenditure to enhance infrastructure and service capabilities
- General corporate purposes to strengthen overall business operations
GMP (Grey Market Premium)
The most recent Grey Market Premium (GMP) for Mangal Compusolution’s IPO is ₹3 as of November 11, 2024. Given the issue’s fixed price of ₹45 per share, the estimated listing price is around ₹48, which suggests a potential gain of 6.67% per share on the listing. This GMP estimate offers investors an initial indication of market interest in the IPO, although final prices may vary based on market sentiment.
Company Overview
Founded in April 2011, Mangal Compusolution Limited is a hardware rental service provider. The company offers rental solutions catering to businesses’ IT hardware needs across various industries. Mangal Compusolution’s extensive product offerings include servers, laptops, desktops, projectors, router switches, workstations, Plasma/LCD TVs, PA systems, and various other accessories. This allows the company to provide customizable rental IT solutions to small and large enterprises tailored to meet specific client needs.
While Mangal Compusolution serves clients across India, its major clients are in Maharashtra. The company divides its revenue into three primary segments: rental income from leased IT equipment, sales of IT equipment, and IT equipment maintenance service fees. Mangal Compusolution has established itself as a customer-centric provider with services that minimize client operational disruption.
SWOT Analysis of Mangal Compusolution Ltd.
| STRENGTHS | WEAKNESSES |
| Varied Product Range: Mangal Compusolution offers a wide variety of IT products from well-known brands like HP, Dell, and Lenovo, allowing it to meet the diverse needs of different industries. Customer Focus: The company’s customer-centric approach includes 24/7 support and maintaining backup equipment to ensure zero client downtime. Reliable Support: The company offers dedicated support teams and maintains an inventory of extra equipment to minimize service interruptions. | Geographical Dependence: While Mangal Compusolution has a nationwide reach, its client base is concentrated in Maharashtra, which could pose a challenge in diversifying geographically. Dependence on Equipment Leasing: A significant portion of its revenue relies on IT equipment rentals, leaving the company vulnerable to shifts in demand for leased IT hardware. |
| OPPORTUNITIES | THREATS |
| Growing Demand for IT Hardware Rentals: With more companies opting for IT hardware rentals over direct purchases, Mangal Compusolution can expand its client base across various sectors. Expansion Potential: By increasing its presence in additional states, the company could increase revenue and further its growth. | Market Competition: The IT hardware rental industry faces competition from several established and emerging players, which could impact Mangal Compusolution’s market share. Technological Advancements: Rapid technological changes could lead to higher maintenance costs or the need for frequent upgrades, impacting profitability if not managed effectively. |
Financial Strength
For the fiscal year ending March 31, 2024, Mangal Compusolution saw a 62.24% increase in revenue, with a 33.24% rise in profit after tax (PAT) compared to the previous fiscal year ending March 31, 2023. This financial growth underscores the company’s effective expansion and growing client demand for IT hardware rental solutions.
Onyx Biotec Ltd IPO
Onyx Biotec IPO is a book-built issue seeking to raise ₹29.34 crores through a fresh issue of 48.1 lakh shares. The minimum application lot size is 2,000 shares, which requires an investment of ₹122,000 for retail investors.
High Net-Worth Individuals (HNI) can invest in a minimum of two lots (4,000 shares), amounting to ₹244,000. The share allotment for this IPO is expected on November 19, 2024, with the tentative listing date on the NSE SME set for November 21, 2024.
| Offer Price | ₹58 to ₹61 per share |
| Face Value | ₹10 per share |
| Opening Date | 13 November 2024 |
| Closing Date | 18 November 2024 |
| Total Issue Size (in Shares) | 4,810,000 shares |
| Total Issue Size (in ₹) | ₹29.34 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 2000 Shares |
| Listing at | NSE, SME |
Objectives of the Onyx Biotec Ltd IPO
The proceeds from the Onyx Biotec IPO are earmarked for the following purposes:
- Upgrading the existing manufacturing Unit I to support large-volume parentals for intravenous use
- Installing a high-speed cartooning packaging line at manufacturing Unit II for Dry Powder Injections
- Prepayment or repayment of certain loans
- General corporate purposes
GMP (Grey Market Premium) of Onyx Biotec Ltd
Onyx Biotec IPO’s last recorded GMP is ₹5, as of November 11, 2024, which puts its estimated listing price at ₹66, considering the IPO price band of ₹61. This suggests a potential gain of 8.20% on the listing price per share. The GMP reflects initial interest in the IPO, but the actual listing price may differ based on demand and market conditions.
Company Overview
Founded in May 2005, Onyx Biotec Limited operates within the pharmaceutical manufacturing sector. The company primarily produces Sterile Water for Injections and is a contract manufacturer for pharmaceutical companies specializing in Dry Powder Injections and Dry Syrups.
Onyx Biotec has a robust production capacity, which is supported by two manufacturing units in Solan, Himachal Pradesh. Unit I has a daily production capacity of 638,889 Sterile Water for injection units. In comparison, Unit II produces 40,000 dry powder injections and 26,667 dry syrup units per day in a single shift.
The company’s clients include well-established pharmaceutical brands like Hetero Healthcare Limited, Mankind Pharma Limited, Sun Pharmaceutical Industries Limited, Aristo Pharmaceuticals Private Limited, and Reliance Life Sciences Limited. Through partnerships with these major players, Onyx Biotec has positioned itself as a reliable contract manufacturer, serving domestic and international markets.
SWOT Analysis of Onyx Biotec Ltd.
| STRENGTHS | WEAKNESSES |
| Established Production Capacity: Onyx Biotec operates two high-capacity manufacturing units, allowing it to meet large-scale production demands. Reputable Client Base: The company partners with well-known brands, enhancing its market credibility and stability. Growing Revenue and Profitability: Onyx Biotec’s recent revenue and profit growth reflects a solid financial position and operational efficiency. | High Dependency on Contract Manufacturing: Relying heavily on contract manufacturing might limit the company’s control over its revenue sources and expose it to fluctuations in client demand. Geographic Concentration of Production Facilities: Both manufacturing units are located in Solan, Himachal Pradesh, which could present logistical challenges if expansion or diversification becomes necessary. |
| OPPORTUNITIES | THREATS |
| Increased Demand for Injectable Pharmaceuticals: The rising demand for injectable drugs offers growth potential for Onyx Biotec’s current product lines. Expansion of International Market Reach: Expanding the company’s client base in overseas markets could enhance revenue growth and diversify income streams. | Regulatory Compliance and Industry Standards: The pharmaceutical industry faces stringent regulatory scrutiny, and any non-compliance could lead to operational disruptions or financial penalties. Intensified Competition: The contract manufacturing sector is competitive, with many players vying for market share, which may pressure pricing and margins. |
Financial Strength
Onyx Biotec has demonstrated significant financial growth in recent years. For the fiscal year ending March 31, 2024, the company’s revenue increased by 35.99%, and its profit after tax (PAT) grew by 64.35% compared to the fiscal year ending March 31, 2023. This financial growth underscores the company’s effective management and increasing demand for its products in the pharmaceutical sector.
Listings this week
Healthcare-focused solution provider Sagility India will be the first to list on the mainboard next week, debuting on November 12, following a 3.2x subscription during the November 5-7 bidding period.
Food delivery giant Swiggy and electricity producer ACME Solar Holdings are set to list on November 13, having garnered 3.59 times and 2.75 times subscriptions, respectively. Meanwhile, trading in shares of Niva Bupa Health Insurance Company will commence on November 14.
| Company | Listing Date | Exchange |
| Sagility India | November 12, 2024 | NSE & BSE |
| Swiggy | November 13, 2024 | NSE & BSE |
| ACME Solar Holdings | November 13, 2024 | NSE & BSE |
| Niva Bupa Health Insurance | November 14, 2024 | NSE & BSE |
Conclusion
With three new IPOs and four notable listings, this week’s activity highlights continued momentum in the public market. Each offering presents opportunities for investors to observe, with companies like Blackbuck and Swiggy capturing significant attention. As these firms take their first steps into the public sphere, this week is a key moment in the IPO landscape. Remember, doing your research is important before investing in any IPO.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
