Share Market News / Shadowfax Technologies will also bring IPO, submit papers, company will raise ₹2500 crore

Share Market News: The Indian IPO market is in a frenzy, with new companies constantly announcing their public issues. Logistics service provider Shadowfax Technologies has also joined this episode, which is preparing to bring an IPO to raise Rs 2,000-2,500 crore. In a public announcement on Tuesday, the company said that it has already filed its draft red herring prospectus (DRHP) with market regulator SEBI (Securities and Exchange Board of India) and stock exchanges. According to industry sources, the company's valuation is likely to be around Rs 8,500 crore.

Form and use of IPO

This IPO will be a mix of new issue and offer for sale (OFS) by existing shareholders. Sources said the company will use the funds raised from the new issue to expand its capacity, accelerate growth, and invest in the network business. Shadowfax is backed by prominent investors such as Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures, and Nokia Growth Funds, which reflects the strong position of the company.

The company's revenue comes primarily from the e-commerce segment, which accounts for about 75 percent of its business. The remaining part is derived from quick commerce and hyperlocal delivery. This diversified revenue model makes Shadowfax a strong player in the logistics sector.

Opting for confidential pre-filing route

Shadowfax has opted for the confidential pre-filing route for its IPO. This strategy allows companies to delay making IPO details public under the Draft Red Herring Prospectus (DRHP), giving them more flexibility. In recent months, several other companies such as Gaja Alternative Asset Management, Shiprocket, Tata Capital, Physicwala, and Imagine Marketing (Boat's parent company) have also opted for the same route.

In 2024, giants like Swiggy and Vishal Mega Mart also launched their IPOs after confidential filing. Market experts believe that this strategy helps companies deal with market uncertainties and reduce the pressure of going public in a hurry.

Shadowfax's huge network

Shadowfax is one of India's leading logistics service providers, focused on e-commerce express parcels and value-added services. Its distribution network covers over 2,200 cities and over 14,300 pin codes. In its last fundraise in February, the company had raised primary and secondary capital at a valuation of Rs 6,000 crore, reflecting its strong growth trajectory.

Growing interest in the market

The entry of new companies in the Indian IPO market is bringing new opportunities for investors. Logistics sector players like Shadowfax, which are operating in fast-growing segments like e-commerce and quick commerce, can be attractive to investors. Experts say the increasing use of the confidential pre-filing route reflects the maturity and strategic thinking of Indian companies.