Summary of this article
Shadowfax Technologies IPO's GMP currently at a discount to issue price
Here are details of the IPO and the GMP
Shadowfax Technologies’ initial public offer (IPO) saw decent demand, with the overall issue subscribed around 2.72 times on the final day of the window on January 22. The company is due for listing on the exchanges on January 28.
During the bidding window, the public issue received bids for around 242.38 million shares against 89.09 million shares on offer. Qualified institutional buyers (QIBs) booked 3.81 times the number of shares reserved for them, leading the demand at the issue. Retail investors booked 2.31 times their allotted quota, and non-institutional investors subscribed 84 per cent above their quota.
Post issue, what investors keep a track of in the grey market premium (GMP), which is a reflection of the investor appetite and the price at which shares of the company can be traded on the exchanges.
Shadowfax Technologies IPO GMP on January 27
Today, on January 27, the GMP of Shadowfax Technologies IPO showed that shares will likely be listed at a discount to the price at the issue. The logistics company’s IPO GMP was at Rs. 120, according to several websites. The upper end of the price band at the IPO was at Rs. 124, and the current GMP is at a Rs. 4 discount, or 3.23 per cent per share.
The GMP has consistently declined since the first day of the bidding window, from trading at a premium to falling below the upper band of the issue price. At the end of the subscription window, the GMP showed a neutral investor appetite.
Shadowfax Technologies IPO Details
The public issue of Shadowfax Technologies was a book-built issue through which the company aimed to raise up to Rs. 1,907.27 crore. The IPO included a fresh issue of 80.6 million shares worth Rs. 1,000 crore. It also included an offer-for-sale of 73.2 million shares worth around Rs. 907.27 crore. The price band of the issue was at Rs. 118-124 per share.
The subscription window for Shadowfax Technologies was open from January 20 to January 22. The book-running lead manager for the issue was ICICI Securities, and Kfin Technologies is the registrar.
A portion of the funds raised through the issue is expected to be used to fund capital expenditure for the network infrastructure of the logistics solution provider. The IPO funds will also be used for lease payments for new first-mile centres, last-mile centres and sort centres. Along with this, the company will also use part of the funds towards branding, marketing and communication activities, while the remainder will be used towards unidentified inorganic acquisitions and general corporate purposes.
