Shadowfax Technologies shares debut 9% lower from upper IPO price band - Sell or hold? Anil Singhvi explains

Shadowfax Technologies Ltd, a leading logistics services provider, opened sharply lower on its stock market debut on Wednesday. The IPO issue price was Rs 124 per share.

On NSE, the stock opened at Rs 112.60, down nearly 9.2 per cent from the previous close. On BSE, the stock opened at Rs 113, down approximately 8.87 per cent.

Shadowfax Technologies IPO Subscription Status

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The initial public offering (IPO) of Shadowfax Technologies, valued at Rs 1,907 crore, received bids for 24,23,88,360 shares against 8,90,88,807 shares on offer, showing a subscription of 2.72 times, according to NSE data.

The IPO received strong interest from institutional investors. The qualified institutional buyers (QIBs) portion was subscribed 3.81 times. Retail individual investors (RIIs) subscribed 2.31 times, while the non-institutional investor category received 84 per cent bids. On the first day of bidding, the public issue had received 47 per cent subscription.

Anchor investors had committed Rs 856 crore ahead of the IPO. The price band for the issue was fixed at Rs 118-124 per share, valuing the company at over Rs 7,100 crore at the upper end.

Shadowfax Technologies IPO Details

The total issue size of Rs 1,907 crore included a fresh issue of shares worth Rs 1,000 crore and an offer for sale (OFS) of Rs 907.27 crore by existing shareholders.

As part of the OFS, investors such as Flipkart Internet, Eight Roads Investments Mauritius II Ltd, NewQuest Asia Fund IV (Singapore) Pte Ltd, Nokia Growth Partners IV, LP, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific Pte Ltd, and Snapdeal founders Kunal Bahl and Rohit Kumar Bansal sold shares.

The company plans to use proceeds from the fresh issue to expand network infrastructure, fund lease payments for first-mile and last-mile operations and sort centres, strengthen branding, marketing, and communication initiatives, pursue potential inorganic acquisitions, and meet general corporate purposes.

Marquee investors, including Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures, and Nokia Growth Funds, back Shadowfax Technologies. The company provides logistics services for e-commerce express parcels and value-added services, serving enterprise clients across e-commerce, quick commerce, food marketplaces, and on-demand mobility sectors. Its services include express forward parcel deliveries, reverse pickups, and on-demand hyperlocal and critical logistics solutions.

Shadowfax Technologies IPO: Anil Singhvi Explains

Anil Singhvi, market expert, commented on the listing, saying, "The response to Shadowfax was quite weak. The issue price was Rs 124, and the stock is likely to list around this level. Short-term investors can keep a stop loss below Rs 118-119. Long-term investors who want to reduce risk can also keep a stop loss around Rs 118, about 4-5 per cent lower. Considering today’s listing, this caution would be better."

Market experts have noted that the listing did not attract strong demand from short-term investors, as evidenced by the opening below the issue price. Anil Singhvi advised caution for both short-term and long-term investors, suggesting appropriate stop-loss levels to manage risk.