Bengaluru-headquartered logistics solutions provider, Shadowfax Technologies, will be open for public subscription from January 20 to January 22, offering shares at a price band of ₹118-124 each. On January 19, just a day before the IPO opened for public subscription, Shadowfax Technologies secured ₹856.02 crore from 39 anchor investors.
The largest investor in the anchor book was ICICI Prudential AMC, which purchased 1.53 crore equity shares for ₹190 crore across its four schemes: ICICI Prudential Flexicap Fund, ICICI Prudential Balanced Advantage Fund, ICICI Prudential Transportation and Logistics Fund, and ICICI Prudential Exports and Services Fund.
Prominent global entities such as Morgan Stanley, Societe Generale, Government Pension Global Fund, HSBC Global Investment Funds, Eastspring Investments, TIMF Holdings, Allspring Global Investments, and Integrated Core Strategies also took part in the company’s anchor book investment.
Insurance firms like ICICI Prudential Life Insurance and Kotak Mahindra Life Insurance also engaged in the anchor book, purchasing 56.45 lakh shares for ₹70 crore.
Shadowfax Technologies IPO allotment is slated to be finalized on Friday, January 23. The company aims to initiate refunds beginning Tuesday, January 27, with shares being credited to the demat accounts of those allotted later that same day after the refunds are processed. The shares of Shadowfax Technologies are expected to be listed on the BSE and NSE on Wednesday, January 28.
The company specializes in rapid parcel delivery tailored for e-commerce, in addition to a range of complementary services.
They offer services such as e-commerce and direct-to-consumer shipments, as well as hyperlocal and swift commerce solutions that are fulfilled within hours or on the same day, along with SMS and personal courier options through the Shadowfax Flash app.
Shadowfax Technologies IPO GMP today
Shadowfax IPO GMP today or grey market premium is ₹6. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Shadowfax Technologies share price was indicated at ₹130 apiece, which is 4.84% higher than the IPO price of ₹124.
According to the activities in the grey market over the past eight sessions, the current GMP ( ₹6) indicates a downward trend. The minimum GMP recorded is ₹0.00, whereas the maximum GMP is ₹16, as per expert analysis.
‘Grey market premium‘ indicates investors’ readiness to pay more than the issue price.
Shadowfax Technologies IPO details
The firm intends to raise ₹1,907.3 crore via an IPO, comprising a new share issuance of ₹1,000 crore and a ₹907.3 crore share sale by current investors.
Of the overall funds, the company intends to assign ₹423.4 crore from the proceeds of the new issue to improve its network infrastructure, whereas ₹138.6 crore will be used to pay for leases of new first mile centers, last mile centers, and sorting centers. Additionally, ₹88.5 crore will be designated for expenses related to branding, marketing, and communication, while the remaining funds will be utilized for acquisitions and general corporate purposes.
The shareholders selling in the offer-for-sale include Flipkart Internet, Eight Roads Investments Mauritius, International Finance Corporation, Qualcomm Asia Pacific, Nokia Growth Partners, NewQuest Asia Fund, and Mirae Asset. Among Shadowfax’s primary shareholders, Flipkart Internet, Eight Roads Investments Mauritius, and NewQuest Asia Fund hold stakes of 14.83%, 14.15%, and 14.08%, respectively.
The company’s founders and promoters, Abhishek Bansal and Vaibhav Khandelwal, have ownership of 10.76% and 8.37% of the shares in the logistics platform, respectively.
ICICI Securities, Morgan Stanley India Company, and JM Financial are acting as the lead book running managers for the Shadowfax IPO, while Kfin Technologies Ltd. will serve as the registrar for the issue.
Shadowfax Technologies IPO review
Swastika Investmart noted that Shadowfax is poised to benefit from significant growth in India’s last-mile logistics and e-commerce delivery sectors. While revenue growth is on the rise, profitability continues to be low, and clarity on margins is still developing. With a Price-to-Sales (P/S) ratio around 2.8x, the IPO is considered to be priced at a premium when compared to Delhivery.
The brokerage indicated that a large portion of their revenue is generated from only two clients: Flipkart, which is also a stakeholder, and Meesho. This investment is suitable solely for high-risk, long-term investors; conservative investors should consider waiting until after the listing for more accurate price assessment.
SMIFS indicated that the company’s extensive range of services, which includes forward parcel delivery, reverse pickups, hand-in-hand exchanges, prime delivery, and hyperlocal fulfillment, generates significant switching costs and opportunities to increase wallet share with prominent clients such as Flipkart, Meesho, Zepto, and Swiggy.
According to the brokerage, continued efforts in expanding the network (aiming for over 2,160 new delivery centers by FY27), enhancing margins through operational efficiency, and monetizing capacity in high-margin sectors like BFSI and cross-border logistics could lead to substantial value creation in the medium to long term.
Shadowfax Technologies IPO subscription status
Subscription for the public issue will open at 10:00 IST during Tuesday’s deals.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
