Shadowfax IPO: Logistics service provider shadowax wants to bring its IPO. For this, the company can submit a draft red herring prospectus (DRHP) from the Confidential Route near the Capital Market Regulator SEBI next week. Confidential root provides secrecy to companies until the final decision on the listing. If necessary, they can later withdraw the draft without disclosing important information based on market conditions.
Confidential pre-filing companies allow sensitive business details or financial metrics and risk to be confidential, especially from computers. On the other hand, Standard DRHP (Draft Red Herring Prospectus) becomes a public document after filing.
What kind of IPO
New shares will also be released in the IPO and will also have an offer for sale from the current shareholders. The company expects its valuation to be around Rs 8500 crore. The company has the money of veterans like American private equity firm TPG, Flipkart, et Rods Ventures, Mirray Asset Ventures and Nokia Growth Funds. According to the news agency PTI, the size of the IPO of Shadowax can be between 2000 to 2500 crores.
Where will be the use of IPO money
According to PTI, sources say that the money received by issuing new shares in the Shadowfax IPO will be used for increasing capacity, growth and in the company’s network business and for investment. Shadowax raised funds at a valuation of about Rs 6000 crore in February this year. Shadowax was started by IIT Delhi students in 2015 by Abhishek Bansal, Vaibhav Khandelwal, Praharsha Chandra and Gaurav Jaithalia.
The company’s distribution network covers more than 2200 cities and more than 14300 pin codes. The e-commerce segment contributes the most to Shadowax Revenue. About 75 percent of the company’s total business is from e-commerce. The rest of the business comes from Quick Commerce and Hyperlokal delivery.
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