Shadowfax IPO to unlock sharp returns for founders, Flipkart and early backers  

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• Shadowfax sets IPO price band at Rs 118-124, valuing firm at Rs 7169 crore
• Promoters, early investors to gain over 1700% returns on their stakes
• Shadowfax's Rs 1907 crore IPO opens Jan 20, listing set for Jan 28

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Early backers and promoters of Shadowfax Technologies Ltd are set for substantial gains as the logistics startup prepares for its initial public offering. The company has fixed its price band at Rs 118-124 per share, valuing it at around Rs 7169 crore at the upper end.

Promoters Abhishek Bansal, Managing Director and Chief Executive Officer, and Vaibhav Khandelwal, Whole-Time Director and Chief Technology Officer, who together hold over 19 percent stake in the company, are set to get returns of over 1700 percent each based on the IPO price band.

Abhishek Bansal holds 5.43 crore shares at an average cost of Rs 6.87 per share, which was valued at around Rs 37 crore earlier and has now risen to over Rs 674 crore at the upper price band of Rs 124 per share, translating into returns of about 1700 percent. Vaibhav Khandelwal, who holds 4.23 crore shares, had his stake valued at Rs 28 crore before the IPO price band and this has now surged to over Rs 524 crore, marking returns of about 1762 percent.

Walmart-owned Flipkart Internet’s investment has also surged sharply. Flipkart, which holds 7.49 crore shares, had its stake valued at Rs 328 crore before the IPO price band and this has now increased to over Rs 929 crore at the upper end. Eight Roads Investments Mauritius, which holds 7.15 crore shares, saw the value of its investment rise from Rs 85 crore before the IPO price band to Rs 886 crore after the price band was announced.

Mirae Asset’s investment has risen to Rs 242 crore from Rs 49 crore, while Qualcomm’s holding has increased to Rs 230 crore from Rs 45 crore based on the IPO price band. TPG’s NewQuest Asia Fund has seen the value of its investment increase to Rs 882 crore from Rs 402 crore, while Nokia Growth Partners’ stake has gone up to Rs 395 crore from Rs 111 crore. The International Finance Corporation’s investment has jumped to Rs 328 crore from Rs 88 crore.

Kunal Bahl and Rohit Bansal, co-founders of Snapdeal and Titan Capital, are sitting on gains of over 158 times on their early investment in Shadowfax. The two invested around Rs 70 lakh in 2015 and received about 89 lakh shares, which are now valued at around Rs 110 crore at the upper end of the price band.

The Bengaluru-based logistics services provider is launching its Rs 1907 crore IPO on January 20. The anchor book will open on January 19, while the public issue will close on January 22. The IPO share allotment will be finalised on January 23 and Shadowfax shares will be listed on January 28.