BlackBuck’s Rs 28.6 Lakh Tax Twist Fuels Rebranding Buzz

Image Source: MoneyControl

Zinka Logistics Solutions, the parent company of trucking platform BlackBuck, has received a tax demand of Rs 28.55 lakh from the Assistant Commissioner of Income Tax (TDS), Bengaluru. The notice pertains to non-deduction of tax at source on certain expenses flagged during the FY18 tax audit.

Key Developments:

- The tax order was issued on July 7 and is currently under appeal. BlackBuck has stated that it does not anticipate any material financial impact from the demand.
- This comes alongside a broader compliance review, with the company previously facing tax demands totaling Rs 14.2 crore for alleged GST and TDS defaults across FY20–FY21.

Strategic Moves:

- BlackBuck has initiated a postal ballot seeking shareholder approval to rename the company from Zinka Logistics Solutions to BlackBuck Limited. This aligns with its brand identity and market presence.
- The company is also seeking ratification of its 2016 and 2019 ESOPs to comply with SEBI’s 2021 regulations.

Market Dynamics:

- Since its IPO in November 2024, BlackBuck has seen significant investor churn. Flipkart exited with Rs 672 crore, while Accel and

Peak XV Partners also sold their stakes.

- Institutional investors including Abu Dhabi Investment Authority, MIT, ICICI Prudential, SBI Mutual Fund, and Nomura India have collectively acquired a 4.73% stake.

Stock Update:

- Shares of BlackBuck were trading slightly higher at Rs 428 on NSE, reflecting investor confidence despite regulatory headwinds.

Sources: YourStory, StartupTalky, Inc42, EntrepreneurTales.