Shares of logistics company Shadowfax Technologies fell nearly 5% on Friday after reports emerged that three early investors are preparing to reduce their holdings through a large block deal. The selling pressure comes immediately after the expiry of the company's six-month post-listing shareholder lock-in period, allowing several pre-IPO investors to monetize part of their investments.
According to the deal terms, Eight Roads Investments, Flipkart Internet, and IMM India Fund are jointly looking to sell up to 9.08% of their combined stake in Shadowfax. The block deal is estimated to be worth around ₹1,048 crore, making it one of the largest secondary market transactions in the logistics sector this year.
The proposed transaction has been priced with a floor price of ₹197 per share, representing a discount of nearly 9.9% to Shadowfax's previous closing price of ₹218.58. Such discounted pricing is common in large institutional block deals, as it helps attract buyers for high-volume share sales.
The largest seller in the transaction is Eight Roads Investments Mauritius II Ltd, Fidelity's investment arm, which currently owns around 9.5% of Shadowfax. Flipkart, one of Shadowfax's earliest strategic investors and largest business partners, holds about 7.3%, while IMM India Fund owns a smaller stake. The block deal will allow these investors to partially monetize their holdings after supporting the company through its growth journey.
The stake sale follows the expiry of the mandatory six-month lock-in period imposed after Shadowfax's IPO earlier this year. With the restriction ending, nearly 49% of the company's outstanding shares have become eligible for trading, significantly increasing the stock's free float in the market.
Market experts noted that such transactions are a normal part of the post-IPO lifecycle. Early investors, including venture capital and private equity funds, often sell a portion of their holdings after lock-in periods expire to realize returns on long-term investments. The selling does not necessarily indicate concerns about the company's underlying business performance.
Despite the sharp decline in the share price, analysts believe the fall is largely driven by technical selling pressure rather than any deterioration in Shadowfax's fundamentals. The company continues to benefit from strong demand for logistics services, particularly from the fast-growing e-commerce and quick-commerce sectors.
Investors will now closely monitor the completion of the block deal and the stock's performance over the coming sessions. Once the additional supply is absorbed by the market, attention is expected to shift back to Shadowfax's financial performance, business expansion, and long-term growth prospects in India's rapidly evolving logistics industry.
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