Shadowfax ended its first day on stock exchanges in red as it was down 3.45% at ₹109.10.
The company also made a weak stock market debut, listing at a 9% discount to the IPO price.
This comes despite it raising strong interest from institutional investors ahead of listing, including ₹856 crore from anchor investors.
Shadowfax Shares End Debut Session in Red after Listing 9% Below IPO Price
The company, which listed with a 9% discount of its issue price, ended its first day on stock exchanges in red. At 3.30 PM, the shares of logistics firm were down 3.45% at ₹109.10 on BSE, while they quoted ₹109.18 on NSE.
Shadowfax Shares End Debut Session in Red after Listing 9% Below IPO Price Shadowfax
Summary
Advertisement
Shares of Flipkart-backed Shadowfax Technologies made a muted stock market debut on January 28. The company, which listed with a 9% discount of its issue price, ended its first day on stock exchanges in red. At 3.30 PM, the shares of logistics firm were down 3.45% at ₹109.10 on BSE, while they were quoting ₹109.18 on NSE.
Shadowfax Technologies opened it first trading around ₹112.60 on the NSE and ₹113 on the BSE, significantly below the IPO issue price of ₹124 per share.
The weak market debut comes despite the IPO of the company closing with 1.68 times subscription during its three days of public bidding.
Shadowfax’s IPO was open for subscription from January 20 to January 22, and was priced in a band of ₹118–₹124 per share. The company raised about ₹1,907 crore through the IPO, which was a combination of a fresh issue of ₹1,000 crore and an offer for sale of ₹907 crore by existing shareholders.
Advertisement
It received bids for 24,23,88,360 shares as against 8,90,88,807 shares on offer. The issue was subscribed 2.72 times with bids coming from more than 2.25 lakh applications.
Institutional investors showed stronger interest, with qualified institutional buyers (QIBs) category subscribed 3.81 times. Retail and non-institutional investor participation was comparatively weaker, as retail individual investors (RIIs) category subscribed 2.31 times and the non-institutional investors (NIIs) category was subscribed 0.84 times.
Ahead of listing, the stock’s grey market premium (GMP), an unofficial indicator of expected listing performance, showed a decline, suggesting limited enthusiasm among investors. At times prior to listing, GMP had slipped into negative territory, signaling expectations that the stock might open at or below its IPO price.
A day before its IPO opened for public subscription, Shadowfax said it raised ₹856.02 crore from 39 large institutional investors, known as anchor investors, on January 19.
Advertisement
In a stock exchange filing, the company said that nine domestic mutual funds were allotted shares worth ₹455.73 crore, which accounted for about 3.67 crore equity shares. These included well-known names such as ICICI Prudential, Nippon Life India, Motilal Oswal, Bandhan Mutual Fund, HSBC Mutual Fund, Helios, JM Financial, and Trust Mutual Fund.
Among them, ICICI Prudential Asset Management Company emerged as the biggest anchor investor, picking up 1.53 crore shares worth ₹190 crore through four of its schemes, including its Flexicap, Balanced Advantage, Transportation and Logistics, and Exports and Services funds.
Shadowfax said the money raised through the fresh issue will be used to expand and strengthen its delivery network. This includes investing in new infrastructure, paying lease costs for additional first-mile and last-mile delivery hubs and sorting centres, and spending on branding and marketing. A part of the funds will also be used for future acquisitions and general business needs, the company added.
Advertisement