Fidelity-backed Eight Roads Ventures, Walmart-owned Flipkart Internet, and IMM India Fund are selling a combined 9.08% stake in Shadowfax Technologies Ltd through block deals worth up to ₹1,048 crore on July 23. This sale coincides with the end of their post-listing lock-in period, allowing 49% of Shadowfax's total shares to become tradeable from this date, according to livemint.com.
The vendors set a floor price of ₹197 per share for the block deals, which is a 9.87% discount to Shadowfax's closing price of ₹218.58 on July 23. Eight Roads Investments Mauritius II Ltd is the entity managing Eight Roads’ share sale. The term sheet reviewed by livemint.com also mentions an upsize option for the offering, which is yet to be determined.
This share sale is significant as it marks one of the first major liquidity events for Shadowfax investors since the company’s listing. The availability of nearly half the company’s shares for trading could impact market dynamics and investor interest. Shadowfax operates in the logistics and delivery sector, which has seen increased investor activity in recent years, with several startups moving towards public markets or secondary share sales.
The expiry of the lock-in period on July 23 enables this block deal, making 49% of Shadowfax’s shares tradeable. The next key date for investors will be the completion of the block deals, which will clarify the final volume of shares sold and the impact on Shadowfax’s stock liquidity, as reported by livemint.com.