Shadowfax IPO Subscribes 47% on Day 1; Retail Demand Surges

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AuthorRiya Kapoor|Published at:
Shadowfax IPO Subscribes 47% on Day 1; Retail Demand Surges
Overview

Logistics firm Shadowfax Technologies' initial public offering garnered 47% subscription on its first bidding day. Retail investors showed strong demand, with their portion fetching 1.11 times bids. Qualified Institutional Buyers and Non-Institutional Investors subscribed 38% and 22% respectively, ahead of the IPO closing on January 22.

Anchor Investor Fundraise

Shadowfax Technologies raised ₹856 crore from anchor investors prior to the IPO's opening, signaling early confidence from large institutions.

IPO Details and Valuation

The three-day initial public offering received bids for 4,18,39,800 shares against 8,90,88,807 shares on offer on its first day. The retail individual investor category was subscribed 1.11 times, demonstrating robust interest from smaller investors. The qualified institutional buyer segment saw 38% subscription, while non-institutional investors subscribed 22% of their allocated portion. The IPO, with a price band of ₹118-₹124 per share, aims to raise ₹1,907.27 crore and values the company at over ₹7,100 crore at the upper end.

Offer Structure and Proceeds

The offering comprises a fresh issue of ₹1,000 crore and an offer for sale (OFS) of ₹907.27 crore by existing shareholders, including Flipkart Internet, Eight Roads Investments Mauritius II Ltd, and others. Proceeds from the fresh issue are earmarked for enhancing network infrastructure, funding lease payments for facilities, and for branding, marketing, and potential inorganic acquisitions.

Company Backing and Business Model

Shadowfax, backed by marquee investors such as Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures, and Nokia Growth Funds, is a leading Indian logistics provider for e-commerce express parcel and value-added services. It caters to diverse clients including quick commerce, food marketplaces, and on-demand mobility firms, offering services like forward parcel deliveries, reverse pickups, and hyperlocal logistics.

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