Shadowfax Gears Up for Rs 2,000 Crore IPO with Updated SEBI Filing
Logistics platform Shadowfax has filed updated draft papers with SEBI for an IPO to raise up to Rs 2,000 crore. The offering is equally split between fresh issue and offer for sale. Funds will be used for network infrastructure (Rs 423 crore+), lease payments (Rs 139 crore), and branding (Rs 88.60 crore). H1 FY2024 saw 68% YoY growth in operational revenue to Rs 1,805 crore and 114% increase in net profit to Rs 21 crore. E-commerce comprises 70% of business, while quick commerce (30%) grew by 90%. Shadowfax aims for a potential listing in December or January, competing with established players like Delhivery in the growing Indian logistics market.
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Logistics platform Shadowfax has taken a significant step towards its initial public offering (IPO) by filing updated draft papers with the Securities and Exchange Board of India (SEBI). The Bengaluru-based company aims to raise up to Rs 2,000 crore through this offering, targeting a potential listing in December or January.
IPO Structure and Fund Allocation
The proposed IPO is structured as a balanced offering, with an equal split between fresh issue of shares and an offer for sale by existing shareholders. Shadowfax has outlined specific plans for utilizing the proceeds from the fresh issue:
| Purpose | Amount (in Rs crore) |
|---|---|
| Strengthening network infrastructure | 423.00+ |
| Lease payments for new centers | 139.00 |
| Branding and marketing | 88.60 |
Financial Performance
Shadowfax has demonstrated strong financial growth in recent times:
| Metric | H1 FY2024 | YoY Growth |
|---|---|---|
| Operational Revenue | 1,805.00 | 68.00% |
| Net Profit | 21.00 | 114.00% |
The company has shown a remarkable turnaround in profitability:
- FY2023: Net profit of Rs 6.00 crore
- FY2022: Net loss of Rs 11.80 crore
Business Segments
Shadowfax's business is primarily divided into two segments:
- E-commerce: Constitutes 70% of the business
- Quick commerce: Makes up the remaining 30%, with a notable 90% growth
Market Position
In the competitive logistics sector, Shadowfax faces competition from established players like the Mumbai-listed Delhivery. The company's move to go public signifies its ambition to strengthen its position in the rapidly evolving Indian logistics market.
Outlook
With the Indian e-commerce and quick commerce sectors experiencing rapid growth, Shadowfax's IPO comes at a strategic time. The company's focus on network expansion and brand building, coupled with its improving financial performance, positions it to capitalize on the increasing demand for efficient logistics solutions in the country.
Investors and market watchers will be keenly observing how Shadowfax's public offering unfolds, given the company's growth trajectory and the vital role of logistics in India's burgeoning digital economy.
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