Shadowfax Technologies IPO to list at a discount? Here's what GMP signals ahead of market debut

Shadowfax Technologies IPO listing: After the successful allotment on Friday, the focus has now shifted to Shadowfax Technologies IPO listing. The mainboard IPO, which opened for subscription on January 20 and closed on January 22, will make its stock market debut on Wednesday, January 28.

Shadowfax Technologies IPO received a moderate response from investors during the three-day subscription period, as it was subscribed 2.72 times by day three.

The retail category saw 2.31 times subscription, while the NII segment was booked 84%. The QIB portion attracted strong interest with 3.81 times bids, and the employee quota was booked 2.07 times. As per BSE data, the issue received bids for 24,23,88,360 shares against the 8,90,88,807 shares available for subscription.

Shadowfax Technologies IPO GMP today

Ahead of the Shadowfax Technologies IPO listing, investors are closely tracking the grey market premium (GMP) to assess the likely listing price.

Shadowfax IPO GMP today stands at ₹-4. Based on the upper end of the price band and the prevailing grey market trend, the stock’s estimated listing price is around ₹120 per share, implying a discount of about 3.23% to the IPO issue price of ₹124.

Grey market activity over the past 14 sessions points to a negative bias, with the prevailing GMP suggesting the possibility of a discounted debut. During this period, the GMP has ranged from a low of ₹-4 to a high of ₹16.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Shadowfax Technologies IPO details

Shadowfax Technologies IPO, with a price band of ₹118– ₹124 per share, aimed to raise ₹1,907.27 crore through a combination of a fresh equity issue worth ₹1,000 crore and an offer for sale (OFS) of ₹907.27 crore.

As part of the OFS, existing shareholders, including Flipkart Internet Pvt Ltd, Eight Roads Investments Mauritius II, Qualcomm Asia Pacific, Nokia Growth Partners IV, L.P., NewQuest Asia Fund IV (Singapore), International Finance Corporation, Mirae Asset–Naver New Growth Fund I, and Mirae Asset–GS Retail New Growth Fund I, will divest their holdings.

Funds raised from the fresh issue will be deployed towards lease payments for first-mile, last-mile and sortation centres, capacity expansion of network infrastructure, branding, marketing and communication activities, general corporate purposes, and potential inorganic acquisitions.

ICICI Securities Ltd is acting as the book-running lead manager, while Kfin Technologies Ltd has been appointed as the registrar to the issue.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.