Shadowfax IPO Opens Jan 20: Price Band, GMP Signal Investor Interest
Overview
Flipkart-backed Shadowfax Technologies launches its ₹1,907.27 crore IPO on January 20, with a price band of ₹118-124 per share. The logistics firm's Grey Market Premium (GMP) is trending upwards, signaling investor optimism for potential listing gains. Funds raised will fuel network expansion, sorting infrastructure upgrades, and branding efforts. The issue closes January 22, with listing expected January 28.
Shadowfax Technologies, the technology-driven logistics firm backed by Flipkart, is set to launch its Initial Public Offering (IPO) on January 20. The issue, valued at ₹1,907.27 crore, comprises both fresh shares and an offer for sale (OFS) by existing investors, aiming to bolster the company's expansion plans.
IPO Timeline
The subscription window for the Shadowfax IPO will be open from January 20 to January 22. Bidding for anchor investors is scheduled for January 19. Following the closure, the basis of allotment is expected by January 23, with refunds processed the same day. Shares are slated for credit to demat accounts by January 27, paving the way for a listing on the stock exchanges on January 28.
Pricing and Lot Size
The company has set its price band at ₹118 to ₹124 per equity share. Investors must bid in lots of 120 shares. Consequently, the minimum investment required for retail investors at the upper price band stands at approximately ₹14,880.
Fund Utilization
Proceeds from the fresh issue are earmarked for significant expansion initiatives. Shadowfax plans to establish new first-mile and last-mile delivery centers, enhance its sorting infrastructure, and cover associated lease costs. A portion will also be allocated to branding and marketing efforts, potential strategic acquisitions, and general corporate purposes.
Offer for Sale Participants
Several prominent existing shareholders are trimming their stakes as part of the OFS component. This includes Flipkart Internet, International Finance Corporation, Qualcomm Asia Pacific, Eight Roads Investments, Nokia Growth Partners, NewQuest Asia Fund, and funds managed by Mirae Asset. Notably, Shadowfax Technologies will not receive any funds from this portion of the offering.
Market Sentiment
The Grey Market Premium (GMP) for the Shadowfax IPO has shown positive traction, currently trending higher by approximately 8%. While this unofficial metric suggests potential listing gains, it is crucial for investors to understand that the actual stock market debut price can diverge significantly from the GMP.
