Shadowfax takes confidential route to file paper for Rs 2,500-crore IPO

Shadowfax takes confidential route to file paper for Rs 2,500-crore IPO

Flipkart-backed logistics startup Shadowfax has filed its draft red herring prospectus (DRHP) under the confidential route to raise Rs 2,000-2,500 crore through an initial public offering (IPO), as an increasing number of startups throng Dalal Street.

In the last two weeks, Pine Labs, Wakefit and Curefoods have all filed their DRHPs as they look to tap public market investors and raise capital to fund their next phase of growth.

In all, the three companies are looking to raise nearly Rs 4,000 crore in primary capital through an IPO. While Shadowfax's split between primary capital and offer for sale component is not known, it is likely to be split equally.

So, Shadowfax will add another Rs 1,000-1,500 crore to the Rs 4,000 crore that new-age companies are looking to raise in primary capital.

Apart from these, companies such as Meesho and Lenskart will also IPO later this year and are expected to file their draft papers in the coming weeks, as reported first by Moneycontrol.

While the DRHPs of Pine Labs, Wakefit and Curefoods were all done under the normal route, Meesho and Lenskart, which are both looking to raise $1 billion or Rs 8,500 crore each, are expected to file confidentially.

The company has chosen to file its papers confidentially, looking to protect sensitive information from competitors such as Delhivery and Ekart. Shadowfax is the latest in a string of new-age companies such as Groww, PhysicsWallah and Shiprocket to file papers confidentially, looking to assess market conditions and decide on their public debut closer to time.