Sands Capital Trims BlackBuck Stake Worth Rs 191 Cr Within a Week
In a significant financial maneuver, US-based investment firm Sands Capital recently reduced its stake in Indian logistics unicorn BlackBuck, generating approximately Rs 191 crore from this partial divestment.
Sands Capital Private Growth II executed the sale of 1.46% of BlackBuck, formally known as Zinka Logistics Solutions, on August 13 through two block deals. This transaction involved the sale of around 26.3 lakh shares on both the BSE and NSE, at an average price point of Rs 515.66 per share, culminating in a total of Rs 135.6 crore.
This adjustment came swiftly on the heels of an earlier sale, where on August 8, Sands Capital sold an additional 0.6% of BlackBuck for a total of Rs 55.58 crore. In this deal, a total of 10.68 lakh shares were offloaded at Rs 520.47 per share.
In aggregate, Sands Capital’s recent sales encompass approximately 2.06% of the company’s equity. The identities of the buyers involved in these trades remain undisclosed. However, industry speculation hints at domestic institutional investors and high-net-worth individuals being potential purchasers.
This strategic move coincides with another significant shift in BlackBuck’s investor landscape. Recently, Wellington Management’s offshore investment fund, Ithan Creek Master Investors, similarly offloaded over Rs 53 crore worth of stakes in the company.
Founded in 2015 by Rajesh Yabaji, Chanakya Hridaya, and Subbu Allamaraju, BlackBuck has established itself as a pivotal trucking marketplace that effectively connects shippers with truck owners across the vast expanse of India. The Bengaluru-based startup made headlines when it joined the prestigious unicorn club in 2021, bolstered by a $67 million funding round from key investors, including Tribe Capital, IFC Emerging Asia Fund, and VEF, among others. Sands Capital had been an active investor in earlier funding rounds, contributing to BlackBuck’s growth trajectory.
BlackBuck made a memorable debut on public markets earlier this year, marking itself as one of the uncommon logistics-tech enterprises to be listed on Indian stock exchanges. Since its listing, the company has benefited from positive investor sentiment, driven by its strategies to narrow losses and the noticeable rebound in freight activity.
Sands Capital’s recent moves are widely interpreted as a partial profit booking strategy post-listing, instead of a complete withdrawal. The firm maintains a significant stake in BlackBuck, reflecting confidence in the company’s sustained potential and market position.
