Shadowfax Technologies makes a weak market debut; stock lists at 9% discount

Shares of Shadowfax Technologies disappointed on their Dalal Street debut on Wednesday, January 28 as the new-age logistics solutions provider was listed at Rs 112.60 on NSE, a discount of 9.19 per cent over its issue price of Rs 124 apiece. Similarly, the stock was listed at a discount of 8.87 per cent at Rs 113 apeice on BSE Ltd.

Listing on Shadowfax Technologies has been below the expectations. Ahead of its listing, Shadowfax Technologies was commanding a discount of Rs 3-5 per share in the unofficial market, suggesting a weak listing pop for the investors. As of the listing price, investors made a loss of Rs 1,368 per lot allotted to them.

The IPO of Shadowfax Technologies was open for subscription between January 20 and January 22. It sold its shares in the price band of Rs 118-124 per share with a lot size of 120 shares. The company raised a total of Rs 1,907 crore via IPO, which included a fresh shares sale of Rs 1,000 crore and offer-for-sale (OFS) up to 7.31 crore shares worth Rs 907 crore.

The issue was overall subscribed only 2.72 times, attracting bids for over Rs 3,000 crore through more than 2.25 lakh applications. The portion for qualified-institutional bidders (QIBs) was subscribed 3.81 times, while the portion for retail bidders was booked 2.31 times during the bidding process. The allocation for non-institutional investors (NIIs) was under subscribed at 84 per cent only.

Incorporated in 2016, Bengaluru-based Shadowfax Technologies is a logistics solution provider company in India. It offers e-commerce express parcel delivery and a suite of value-added offerings. Its service offerings include e-commerce and D2C delivery, hyperlocal & quick commerce within hours or same day, and SMS & personal courier services through its flash app.

Brokerage firms had mixed views on the issue. ICICI Securities, Morgan Stanley India Company and JM Financial were the book running lead managers for the IPO of Shadowfax Technologies and Kfin Technologies was the registrar of the issue.