Shadowfax Technologies Faces a Challenging Market Debut

Shares of Shadowfax Technologies Ltd experienced a disappointing market debut, closing over 11% below their issue price. Despite a strong IPO subscription, the stock faced a downturn in its trading on both the BSE and NSE. The company aims to use the IPO proceeds for expansion and corporate development.

Shadowfax Technologies Ltd, a prominent logistics services provider, faced a rough first day on the stock market as its shares concluded trading significantly below the issue price. Listed at Rs 113, the stock ended at Rs 109.90 on the BSE, marking an 11.37 per cent decline.

The fresh initial public offering (IPO) of Shadowfax was met with enthusiasm, being subscribed 2.72 times. However, upon its market introduction, the share price fell to Rs 112.60 on the NSE, ending the session at Rs 109.98, reflecting an 11.30 per cent discount.

The company, backed by investors including Flipkart and TPG, raised Rs 1,000 crore through a fresh issue and Rs 907.27 crore via an Offer-for-Sale. The funds are intended to bolster capacity and infrastructure, enhance branding efforts, and support potential acquisitions.

(With inputs from agencies.)