As logistics unicorn BlackBuck
gears up for its public itemizing, its prime two exterior shareholders, Flipkart and Accel, are set to rake in practically 5X returns on their funding within the firm.
BlackBuck set a worth band of INR 259 to INR 273 per share for its preliminary public providing (IPO).
Flipkart, which held a 13.2% stake, or 2.1 Cr shares, in BlackBuck through its Singapore-based subsidiary Quickroutes Worldwide forward of the IPO, is offloading 55.3 Lakh shares for round INR 151.1 Cr on the higher finish of the worth band as a part of provide on the market (OFS) within the IPO. The corporate acquired these shares for about INR 28.8 Cr, translating to five.24X returns on the funding.
However, Accel India IV (Mauritius) Restricted held a 14.31% stake in BlackBuck, or 2.3 Cr fairness shares, that it acquired at a mean value of INR 62.71 per share. Accel is promoting 43.1 Lakh shares for about INR 117.6 Cr, leading to 4.3X positive aspects on its funding within the firm.
Accel and Flipkart Logistics Personal Restricted first invested within the trucking platform in 2015 in its $6 Mn Collection A funding spherical. In early 2016, BlackBuck raised its $25 Mn Series B round from Tiger World, Apoletto Asia. This spherical additionally noticed participation from Accel and Flipkart.
In 2018, Flipkart transferred its possession in Flipkart Logistics Personal Restricted to its Singapore-based subsidiary Quickroutes Worldwide Personal Restricted. Through the years, Quickroutes and Accel continued to extend their stakes with additional follow-on investments in BlackBuck.
Based in 2015 by IIT Kharagpur alumni Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam, BlackBuck initially began as a truck aggregator. It at present gives a full stack of options – from load administration and telematics to funds for gasoline, FASTag or toll expenses, and truck financing. It operates a B2B market specialising in inter-city full truckload (FTL) transportation.
The logistics unicorn’s IPO comprised a recent problem of shares value INR 550 Cr and an OFS part of greater than 2.06 Cr shares.
Among the many different promoting shareholders, Tiger World’s Web Fund III will get 3.95X returns by promoting 13.69 Lakh shares of the corporate. The worldwide VC large acquired these shares for about INR 9.4 Cr, and is now promoting them at INR 37.4 Cr on the higher finish of the worth band.
However, Sands Capital and Worldwide Finance Company, who first invested in BlackBuck in its Collection C funding spherical, are additionally set to make massive positive aspects. Whereas Sands Capital will make 2.1X positive aspects by offloading 5.3 Lakh shares, World Financial institution-backed Worldwide Finance Company will make 1.4X returns by promoting nearly 23.4 Lakh shares as a part of the OFS.
Nevertheless, Peak XV Companions (previously Sequoia Capital), which additionally first infused capital in BlackBuck as a part of its prolonged Collection C funding spherical, is about to make an 11.6% loss on its funding within the startup.
Forward of the IPO, Peak XV held a 2.14% stake, or 34.94 Lakh shares, in BlackBuck that it had acquired at a mean value of INR 308.98 per share. As a part of the OFS part, the main VC agency will offload 11.26 Lakh shares, making INR 30.7 Cr as in opposition to INR 34.8 Cr it spent to accumulate these shares.
Equally, Swedish funding agency VEF AB is promoting nearly half of its shares in BlackBuck, making greater than a 43% loss on its funding within the firm.
It’s pertinent to notice that the aforementioned shareholders are promoting solely partial stakes in BlackBuck and can proceed to carry stakes within the firm after the IPO.
In the meantime, promoter and CEO Yabaji, who held the very best stake (14.45%) within the firm pre-IPO, is predicted to pocket no less than INR 60.6 Cr by promoting 22.2 Lakh shares as a part of the OFS. Yabaji had acquired these shares at merely INR 8,000.
BlackBuck’s two different promoters, cofounders Hridaya and Subramaniam, are promoting 11.9 shares every throughout the IPO, and can make INR 30.3 Cr every.
A Recap Of BlackBuck’s IPO
The corporate filed its DRHP in June this 12 months for its IPO comprising a recent problem of shares value INR 550 Cr and an OFS of as much as 2.16 Cr shares. Nevertheless, BlackBuck decreased the OFS part barely whereas submitting its RHP earlier this month.
BlackBuck can also be going public at a decrease valuation. As in opposition to its 2021 valuation of INR 7,400 Cr, the corporate is eyeing a valuation of somewhat over INR 4,800 Cr in its IPO.
Regardless of decreasing the valuation to seize extra traders, the startup’s public providing was oversubscribed by only 1.86X, decrease than all the opposite mainboard new-age tech startup IPOs this 12 months.
Whereas the QIB quota was oversubscribed 2.76X, the IPO obtained 1.65X subscription from retail traders. The NIIs positioned bids for merely 24% of the shares reserved for them.
Forward of the IPO, BlackBuck raised INR 501.33 Cr from anchor traders, who subscribed to 1.83 Cr fairness shares at INR 273 apiece.
The itemizing of the corporate’s shares on the NSE and the BSE is predicted this week.
It should be famous that shares of foodtech main Swiggy listed at an 8% premium to its issue price final week. Its IPO additionally obtained a muted market response in comparison with different new-age tech startups that went public this 12 months.