Summary of this article
Shadowfax Technologies shares listed on the exchanges
Shares of Shadowfax trading 9 per cent lower than issue price on NSE
Shadowfax Technologies IPO Listing: Shares of the logistics solution provider listed on the National Stock Exchange (NSE) and BSE on January 28. The stock made a muted beginning on D-Street, listing more than 9 per cent below the issue price on the NSE.
On the NSE, shares of the company opened at Rs. 112.6 per share, while on the BSE, the first trade was at Rs. 113 per share. The price band of shares of Shadowfax Technologies was between Rs. 118-124 per share.
Before the listing, shares of Shadowfax Technologies were quoted at a negative grey market premium (GMP) of Rs. 4 to the upper price band at the issue, indicating muted investor appetite. Based on GMPs according to different websites, shares of the company were expected to list at around Rs. 120 per share. However, the debut was below this level, which resulted in a negative listing of the shares.
Shadowfax Technologies IPO Details
The IPO of Shadowfax Technologies was issued through a book-built method. In the IPO, the company looked to raise to Rs. 1,907.27 crore. This included 80.6 million shares worth Rs. 1,000 crore of the fresh issue. 73.2 million shares worth around Rs. 907.27 crore were also there as offer-for-sale.
Shadowfax Technologies’ IPO application was open from January 20 to January 22. ICICI Securities was given the role of book-running lead manager in the IPO, and Kfin Technologies was the registrar.
Shadowfax Technologies IPO Listing: How Much Investors Lost
During the IPO application window of Shadowfax Technologies, retail investors applied for the public issue by bidding for a minimum of Rs. 14,880 for one lot or 120 shares at the upper end of the price band.
The opening price on the NSE at listing was Rs. 112.6, which is Rs. 11.4 below the issue price. This accounted for an implied loss of Rs.1,368 per lot for investors. Meanwhile, on the BSE, the debut price of Shadowfax Technologies was Rs. 113, leading to an implied loss of Rs. 1,320 per lot, slightly less than on NSE.
Shadowfax Technologies IPO Subscription Details
Shadowfax Technologies, during the subscription window, saw firm demand from investors, with the issue being subscribed 2.72 times across categories on the final day, i.e., on January 22. Out of 89.09 million shares which were on offer, investors booked a total of 242.38 million shares. Among different classes of investors, qualified institutional buyers (QIBs) showed the most interest, booking their quota around 3.8 times. Retail investors subscribed 2.3 times the total number of shares allotted for them, while non-institutional investors booked around 84 per cent of their allotted quota.
Shadowfax Technologies IPO Business Model and Competitors
Shadowfax Technologies is a logistics solution provider operating in both e-commerce and direct to customer (D2C) delivery services. It also provides services to e-commerce companies as well as offering hyperlocal and quick commerce services. The company has 4,299 touchpoints under the company network across India.
According to the company's red herring prospectus filed with the Securities and Exchange Board of India (Sebi), major logistics and technology-led delivery providers in India are competitors of Shadowfax Technologies. Blue Dart Express and Delhivery are among the listed competitors while Xpressbees and Ecom Express, which are unlisted in India, also compete with the company. Along with this, Zepto, Blinkit, Swiggy, and Big Basket, platforms which have their own delivery operations, also compete with Shadowfax Technologies.
Shadowfax Technologies IPO Objectives
Shadowfax Technologies’ proceeds from the public issue are expected to be used to fund capital expenditure for network infrastructure. A part of the funds raised by the logistics solution provider will also be used to lease payments for new first-mile centres, last-mile centres and sort centres. Additionally, the funds will also be used for funding branding, marketing and communication activities. Meanwhile, remaining proceeds will be used for unidentified inorganic acquisitions and general corporate purposes.
