Eight Roads, Flipkart, IMM offer Shadowfax shares worth ₹1,048 crore as lock-in ends
Fidelity-backed Eight Roads Ventures, Walmart-owned Flipkart Internet, and IMM India Fund are offering to sell a combined stake of up to 9.08% in Shadowfax Technologies
Fidelity-backed Eight Roads Ventures, Walmart-owned Flipkart Internet, and IMM India Fund are offering to sell a combined stake of up to 9.08% in Shadowfax Technologies Ltd through block deals on Friday as their post-listing lock-in period comes to an end, according to a term sheet reviewed by Mint. According to the term sheet, the vendors are offering shares worth up to ₹1,048 crore. The floor price is set at ₹197 per share, representing a 9.87% discount to the stock's closing price of ₹218.58 on 23 July. An upsize option for the offering is yet to be determined. Eight Roads Investments Mauritius II Ltd (the entity through which Eight roads is executing the share sale) currently holds 55.57 million shares, representing about 9.50% of Shadowfax's total shares outstanding.
Flipkart holds 42.64 million shares, or roughly 7.29%, and IMM India holds less than 1%. Eight Roads was the first institutional investor in Shadowfax, having come on board in 2015. Flipkart, the other major investor, is also one of Shadowfax's biggest clients. Also Read | Logistics firms deepen data play as brands seek granular insights Lock-in period ends The stake sale coincides with the expiry of the si month lock-in period for major pre-IPO investors and backers after the company's IPO in late January. The expiry makes 49% of Shadowfax's total shares (worth around ₹6,300 crore) tradeable from Friday, 23 July. News outlet Moneycontrol was the first to report on 13 July that Flipkart was likely to sell a stake worth ₹700 crore in Shadowfax once the lock-in period expired.
Responding to queries from the exchanges, Shadowfax clarified that it was not aware of any such negotiations referred to in the report. Both Eight Roads and Flipkart sold Shadowfax shares through an offer for sale during the company's IPO, in which shares issued at ₹124 listed at ₹113, an 8% discount. The stock price has almost doubled since then. Also Read | Temasek to sell 2.6% stake in PB Fintech via block deal Kotak Securities Ltd and Morgan Stanley India Co are acting as placement agents for Eight Roads Investments, while Kotak is also acting as the placement agent on behalf of Flipkart and IMM India. Shadowfax reported revenue of ₹1,237 crore in the March quarter, up 74% from ₹712 crore a year earlier.
Adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) grew almost 11-fold to ₹58 crore from ₹5 crore in the Q4FY25. The company made a profit of ₹56 crore after clocking a ₹10 crore loss in the year-ago quarter. Shadowfax is yet to announce its June quarter earnings.
The BriefWire