BlackBuck files DRHP with SEBI to raise ₹550 crores via IPO

Truck aggregator BlackBuck has submitted a draft red herring prospectus (DRHP) to SEBI for its upcoming IPO (initial public offering), which aims to raise Rs 550 crore through a new share offering. The Company’s headquarters are situated in Bangalore.
BlackBuck IPO

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An offer for sale (OFS) of 21.6 million shares by current shareholders is part of the offering. Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam, the co-founders and promoters of the company, will each sell 2.2 million, 1.1 million, and 1.1 million shares respectively, in the OFS.

Well-known investors in the proposed IPO, including Accel, Tiger Global, and Peak XV Partners, will also partially sell their holdings. Accel, the largest shareholder with a 14% stake, plans to sell 4.3 million shares and 923,282 shares through its two units. The World Bank-backed Company, International Finance Corporation will sell 1.7 million shares and 628,315 shares through two entities, while Singapore-based Quickroutes International will sell 3.9 million shares. Through its three participating entities in the OFS, US-based Sand Capital will also sell 1.3 million shares, 514,745 shares, and 302,328 shares, respectively.

BlackBuck files DRHP with SEBI to raise ₹550 crores via IPO

Additionally, the OFS will also include the sale of 883,322 shares by venture fund Tiger Global Management, 640,409 by Peak XV Partners, and 529,993 by B Capital.

BlackBuck plans to allocate Rs 200 crore from the proceeds to sales and marketing and invest Rs 140 crore in its non-bank financial company (NBFC) subsidiary, Blackbuck Finserve. The net proceeds invested in the NBFC subsidiary will be used by BFPL for financing and expansion of its capital base to meet future capital requirements, according to DRHP. Additionally, BlackBuck plans to invest Rs 75 crore in product development.

BlackBuck reported having 9,63,345 truck operators as of March 31 and 5,97,638 monthly transacting truck operators on its BlackBuck Application in 2023–24, up from 4,58,025 truck operators in the previous fiscal year. The company reported operating revenue of Rs 296 crore for 2023–24, up from Rs 175 crore for the previous financial year. In comparison to a loss of Rs 236 crore the year before, it declared a loss of Rs 166 crore from continuing operations for the fiscal year.

The issue’s book-running lead managers are IIFL Securities, JM Financial, Axis Capital, and Morgan Stanley. The IPO GMP (Grey Market Premium) will have a significant impact on the potential valuation of BlackBuck’s shares and overall market sentiment.

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