Shadowfax Technologies Limited approved the incorporation of a new wholly owned subsidiary and the allotment of 49,098 equity shares under its employee stock option plan on October 16, 2026.

The board meeting authorized the creation of a new entity in the logistics and other services sector. The subsidiary will be incorporated in India, with Shadowfax subscribing to 100% of its initial paid-up share capital in cash at par value. The specific name of the subsidiary is pending approval from the Ministry of Corporate Affairs.

Concurrently, the company allotted equity shares to employees who exercised stock options under the SFX ESOP 2016. These shares, with a face value of ₹10 each, were issued at an exercise price of ₹10 per option.

Capital Structure Update

Following the allotment, the issued, subscribed, and paid-up equity share capital of the company increased. The total number of equity shares rose from 58,69,42,990 to 58,69,92,088.

The money realized from the exercise of these options amounted to ₹4,90,980. The newly issued shares rank pari passu with existing fully paid-up equity shares, carrying identical rights.

What the Numbers Show

The dilution impact on earnings per share remains minimal. For the year ended March 31, 2026, the basic EPS stood at ₹2.22, while the diluted EPS was reported at ₹2.18. This indicates that the exercise of these specific options resulted in a marginal reduction in EPS, reflecting the low volume of shares issued relative to the company's total outstanding equity base.

Shadowfax Technologies Limited saw a significant reduction in institutional holding after NewQuest Asia Fund IV (Singapore) Pte. Ltd. disposed of 1,50,00,396 equity shares through open market sales between September 1 and September 30, 2026.

The cumulative sale crossed the 2% threshold prescribed under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Consequently, NewQuest’s shareholding decreased from 9.26% to 6.69% of the total voting capital.

Breakdown of Share Disposal

NewQuest executed the disposals across five separate trading sessions. The bulk of the shares were sold on September 8 and September 30, accounting for 80,00,000 and 40,00,000 shares respectively.

Post-Transaction Holding Structure

Following the disposal, NewQuest holds 3,91,61,696 equity shares. The seller does not belong to the promoter or promoter group category. The transaction was conducted entirely via the open market mechanism.

What the Numbers Show

The data reveals a concentrated exit strategy rather than a gradual trickle. Approximately 80% of the total shares sold by NewQuest during this period were disposed of in just two trading sessions: September 8 and September 30. This suggests a deliberate effort to reduce exposure rapidly while maintaining compliance with regulatory disclosure thresholds that trigger upon crossing specific percentage limits.