Eight Roads, Flipkart, IMM offer Shadowfax shares worth ₹1,048 crore as lock-in ends
Early institutional backers and key commercial partners move to trim holdings via secondary market block deals as 49% of the logistics firm's total shareholding becomes tradeable.
Fidelity-backed Eight Roads Ventures, Walmart-owned Flipkart Internet, and IMM India Fund are offering to sell a combined stake of up to 9.08% in Shadowfax Technologies Ltd through block deals on Friday as their post-listing lock-in period comes to an end, according to a term sheet reviewed by Mint.
According to the term sheet, the vendors are offering shares worth up to ₹1,048 crore. The floor price is set at ₹197 per share, representing a 9.87% discount to the stock's closing price of ₹218.58 on 23 July. An upsize option for the offering is yet to be determined.
Eight Roads Investments Mauritius II Ltd (the entity through which Eight roads is executing the share sale) currently holds 55.57 million shares, representing about 9.50% of Shadowfax's total shares outstanding. Flipkart holds 42.64 million shares, or roughly 7.29%, and IMM India holds less than 1%. Eight Roads was the first institutional investor in Shadowfax, having come on board in 2015. Flipkart, the other major investor, is also one of Shadowfax's biggest clients.
Lock-in period ends
The stake sale coincides with the expiry of the six-month lock-in period for major pre-IPO investors and backers after the company's IPO in late January. The expiry makes 49% of Shadowfax's total shares (worth around ₹6,300 crore) tradeable from Friday, 23 July.
News outlet Moneycontrol was the first to report on 13 July that Flipkart was likely to sell a stake worth ₹700 crore in Shadowfax once the lock-in period expired. Responding to queries from the exchanges, Shadowfax clarified that it was not aware of any such negotiations referred to in the report.
Both Eight Roads and Flipkart sold Shadowfax shares through an offer for sale during the company's IPO, in which shares issued at ₹124 listed at ₹113, an 8% discount. The stock price has almost doubled since then.
Kotak Securities Ltd and Morgan Stanley India Co are acting as placement agents for Eight Roads Investments, while Kotak is also acting as the placement agent on behalf of Flipkart and IMM India.
Shadowfax reported revenue of ₹1,237 crore in the March quarter, up 74% from ₹712 crore a year earlier. Adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) grew almost 11-fold to ₹58 crore from ₹5 crore in the Q4FY25. The company made a profit of ₹56 crore after clocking a ₹10 crore loss in the year-ago quarter. Shadowfax is yet to announce its June quarter earnings.
Before Shadowfax, eyewear retailer Lenskart Solutions Ltd had seen early backers offload their holdings once their lock-ins expired. Singapore's sovereign wealth fund Temasek sold a 2% stake in Lenskart for ₹1,940 crore this month after Abu Dhabi's sovereign wealth fund sold a 2.3% stake for a similar amount. On 3 June, a SoftBank entity had sold a 3.25% stake through a block deal worth ₹2,873 crore.
About the Author
Agnidev Bhattacharya
Agnidev is a business journalist with over two years of reporting experience tracking the intersection of capital, policy, and corporate strategy in India.
He joined Mint in December 2025, after a stint at NDTV Profit (erstwhile BQ Prime). At Mint, Agnidev focuses on the high-stakes world of the Indian capital market, specialising in mergers and acquisitions, burgeoning IPOs, and the investment banking industry.
Backed by a rigorous, data-driven approach, Agnidev frequently breaks news on the valuation cycles, deal pipelines and listing strategies of India’s most prominent companies. His reportage offers deep dives into the operational health of market leaders across the corporate landscape, providing readers with a clear-eyed view of institutional growth.
He has reported on major issues like India's derivatives frenzy, IPO froth, the competitive quick commerce industry, the real-money gaming ban, and has broken investigative stories related to scandals such as IndusInd Bank's accounting manipulation and the Gensol-BluSmart fiasco.
As a reporter, he brings stories that ultimately affect your stock market investments, and tries to bring clarity and brevity in a field that is often filled with jargon and noise.
Source: Livemint — Companies
