Shadowfax Prepares for Rs 1,907 Crore IPO to Boost Logistics Sector

Introduction to Shadowfax’s IPO

Shadowfax, a prominent logistics and delivery platform, is on the verge of launching its initial public offering (IPO) valued at Rs 1,907 crore, with the upper limit of its price band set at Rs 124 per share. This pricing strategy paves the way for substantial profits for many investors who entered early.

Investor Returns and Opportunities

According to the offer details and price band, several strategic and financial supporters are poised to reap considerable rewards as they reduce their stakes in the logistics venture. Flipkart, one of the early investors in Shadowfax, is projected to realise nearly 3X returns by divesting shares valued at around Rs 237 crore through the offer-for-sale (OFS).

Financial Backers’ Gains

Among the financial investors, Eight Roads Investments, linked to Fidelity, stands out with an anticipated return of approximately 10X on shares valued at Rs 197 crore. NewQuest Asia Fund is expected to realise about 2X gains by offloading shares worth Rs 150 crore. Additionally, Nokia Growth Partners (NGP Capital) is likely to achieve nearly 4X returns on its Rs 101 crore OFS. The International Finance Corporation (IFC), connected to the World Bank, is also projected to partially exit with around 4X returns on shares valued at Rs 84 crore.

Individual Investment Highlights

Among the other investors, Mirae Asset is expected to secure close to 4.9X returns from its Rs 138 crore stake sale, while Qualcomm Asia Pacific is likely to earn around 5X returns by selling shares valued at Rs 62 crore. Importantly, individual investors Kunal Bahl and Rohit Kumar Bansal are set to be the most significant beneficiaries in percentage terms, each selling shares worth Rs 14 crore, which translates to an astonishing 157X return on their initial investments, according to the IPO pricing structure.

Structure of Shadowfax’s IPO

The IPO consists of a fresh issuance of around Rs 1,000 crore along with an offer-for-sale component approximating Rs 907 crore. The firm aims for a post-money valuation close to Rs 7,400 crore, slightly lower than previous internal assessments.

About Shadowfax

Founded in 2015 by Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra, and Gaurav Jaithliya, the Bengaluru-based company specialises in last-mile delivery, servicing both e-commerce and hyperlocal sectors. The platform operates across more than 14,000 pin codes with a network of 1.25 lakh delivery partners.