Shadowfax Targets IPO to Propel Growth in Indian Logistics Market

Logistics service provider Shadowfax has announced a price band of Rs 118 to Rs 124 per share for its IPO, valued at over Rs 7,100 crore. The IPO includes a fresh issue worth Rs 1,000 crore and an offer for sale worth Rs 907.27 crore. Proceeds will fund infrastructure and acquisitions.

Shadowfax, a prominent logistics service provider in India, announced the price range for its anticipated initial public offering (IPO) at Rs 118 to Rs 124 per share. This valuation pegs the company's worth at over Rs 7,100 crore at the higher end of the spectrum.

The IPO, set to open for subscription from January 22 to January 24, comprises a fresh share issuance of Rs 1,000 crore alongside an offer for sale totaling Rs 907.27 crore. This results in a total issuance size of Rs 1,907.27 crore. The initiative marks a strategic step as Shadowfax seeks to target long-term institutional investors with a reduced valuation from previous estimates.

Proceeds from the IPO are earmarked for key operational enhancements, including expanding network infrastructure, leasing new facilities, and bolstering branding efforts. The move comes as Shadowfax, backed by key investors such as Flipkart and Nokia Growth Partners, continues to fortify its position in the e-commerce logistics sector with a service network that spans nearly 14,758 Indian pin codes.

(With inputs from agencies.)