Shares of logistics services provider Shadowfax Technologies Ltd are set to make their market debut on Wednesday, with the company scheduled to list on the NSE and BSE.
The company’s Rs 1,907-crore initial public offering (IPO) was subscribed 2.72 times on the final day of bidding on Thursday. According to NSE data, the issue received bids for 24.23 crore shares against 8.9 crore shares on offer.
Ahead of the public issue, Shadowfax had raised Rs 856 crore from anchor investors.
The IPO was priced in the range of Rs 118 to Rs 124 per share, valuing the company at over Rs 7,100 crore at the upper end of the price band.
Commenting on the issue, Mahesh M. Ojha, VP Research and Business Development at Kantilal Chhaganlal Securities Pvt Limited, said Shadowfax is a technology-driven, asset-light logistics company focused on last-mile delivery, express parcels, reverse logistics and quick commerce services. The company operates across more than 2,300 cities and 14,700 PIN codes and serves clients such as Flipkart, Meesho, Swiggy, Blinkit and Nykaa.
He noted that while the company has reported strong revenue growth and improving profitability, the IPO valuation appears relatively rich. At around 2.8 times price-to-sales, the valuation is higher compared with peers such as Delhivery. The business also faces intense competition and customer concentration risks, with a significant portion of revenue coming from a small number of large clients.
According to him, the stock may be suitable for high-risk investors given the overall positive industry outlook. Investors with a long-term perspective who have already applied may consider holding the stock, while short-term investors could look to book gains on listing, if any. Fresh investors may wait for price discovery after listing.
Shadowfax Tech shares are commanding a flat GMP in the unofficial market.
Shadowfax is backed by investors including Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures and Nokia Growth Funds.
The company serves a wide range of enterprise clients across e-commerce, quick commerce, food marketplaces and on-demand mobility segments, offering services such as express forward parcel deliveries, reverse pickups and hyperlocal logistics solutions.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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