Shadowfax Technologies IPO Analyzed

Key Points

• Weak investor interest: IPO subscribed only 60%.
• Retail investors strong: 1.64x subscription rate.
• Institutional investors muted: QIBs at 38%, NIIs at 33%.
• Grey market premium: ₹125.5 per share (1.21%).
• IPO aims to raise ₹1,000 crore.
• Funds for expansion, acquisitions, and branding.

The Shadowfax Technologies IPO, which opened for investment on January 20th, hasn’t attracted the strong interest some investors were hoping for. Only 60% of the shares offered were taken up by the public during the first two days of bidding. This means that there’s still time for investors to jump in.

Here’s the breakdown: Investors really liked the idea – 533 million shares were bid for when the company was offering 891 million. The people who wanted these shares the most were regular investors (retail individual investors), who bought shares 1.64 times more than what was available. However, big investors and other investors didn’t show as much interest; only about 38% and 33% of their shares were bought.

You might have also heard about the “grey market.” This is like a secret market where shares are traded before the official listing. Shadowfax Technologies’ shares were trading at about ₹125.5, meaning investors were willing to pay extra for them. This extra amount, called a “grey market premium,” is ₹1.5 per share, or 1.21% more than the original price range set for the IPO.

Several companies gave different opinions on whether to buy or not. Some, like SBI Securities and Swastika Investmart, said “don’t buy” because the company is charging too much for its shares compared to other similar companies, and it depends too much on just a few big customers like Flipkart and Meesho.

But SMIFS suggested “buy” and said you should invest for many years, highlighting that Shadowfax is the leader in its field, uses smart technology, and is doing well in the growing e-commerce delivery business in India.

The IPO involves selling new shares worth ₹1,000 crore and also allowing existing shareholders to sell some of their shares. The price range for these shares is between ₹118 and ₹124 per share. If you buy one lot (120 shares), you’d need to spend at least ₹14,880.

The company plans to use the money raised to build more warehouses and delivery centers, pay for leases, and also to promote itself and maybe even buy other companies. The IPO is expected to list on the NSE and BSE on January 28th, 2026.

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