Shadowfax Technologies, a technology-led logistics company that works closely with India’s digital commerce ecosystem, is set to enter the primary market on January 20. The initial public offering will open for subscription on January 20.
Let’s take a look at the key details of this upcoming IPO that every investor need to know ahead of its opening-
Shadowfax IPO: Key details of the issue
The Shadowfax IPO is sized at Rs 1,907.27 crore and combines two elements. Breaking it down, a portion of the issue will be fresh shares issued by the company, while the rest will come from existing investors selling part of their holdings.
The public issue will close on January 22, while bidding for anchor investors is scheduled a day earlier, on January 19.
Shadowfax IPO: GMP
The GMP of the Shadowfax IPO has started trending higher. It is up nearly 8% so far, indicating listing gains. However, readers must remember this is an unofficial metric of user sentiment, The actual listing price can differ a lot from the GMP.
Shadowfax IPO: Price band and minimum investment
The company has fixed a price band of Rs 118-124 per share. Investors will need to apply in lots of 120 shares. This means that the minimum investment at the upper end of the band works out to just under Rs 15,000.
Retail investors will be allotted a smaller portion of the issue compared to institutional investors, as is common for large mainboard IPOs.
Shadowfax IPO: Fund utilisation
Funds raised through the fresh issue will be directed towards expanding Shadowfax’s logistics network.
According to the company, the money will be used for setting up new first-mile and last-mile centres, strengthening sorting infrastructure, and meeting lease-related costs.
Apart from this, a part of the proceeds will also go towards branding and marketing, possible future acquisitions, and general corporate needs.
Shadowfax IPO: Who is selling shares in the offer
Several well-known investors are trimming their stakes as part of the offer for sale. These include Flipkart Internet, International Finance Corporation, Qualcomm Asia Pacific, Eight Roads Investments, Nokia Growth Partners, NewQuest Asia Fund, and funds backed by Mirae Asset. The company itself will not receive any proceeds from this portion of the IPO.
Shadowfax IPO: Timeline from allotment to listing
Once the issue closes on January 22, the basis of allotment is expected to be finalised on January 23. Refunds for unsuccessful applicants will also be initiated the same day. Shares are likely to be credited to demat accounts by January 27, with the stock scheduled to list on the exchanges on January 28.
What the company does
Shadowfax operates as a third-party logistics provider, using technology to manage deliveries for digital-first businesses. Its services span express parcel delivery, reverse pickups, quick commerce, hyperlocal deliveries and other time-sensitive logistics.