Walmart-owned Flipkart and Fidelity-backed Eight Roads Ventures are set to sell a combined stake of up to 9.08% in Shadowfax Technologies Ltd through block deals, valued at approximately ₹1,048 crore. This transaction coincides with the end of the lock-in period for major pre-IPO investors, effective July 23, 2026, according to a term sheet reviewed by Mint.
Key Details
The sale includes shares priced at a floor of ₹197 each, reflecting a 9.87% discount to Shadowfax's closing price of ₹218.58 on July 23. Eight Roads holds about 9.50% of Shadowfax's total shares, while Flipkart owns approximately 7.29%. IMM India Fund holds a smaller stake of less than 1%. The stake sale allows for 49% of Shadowfax's total shares, valued around ₹6,300 crore, to become tradeable following the expiration of the six-month lock-in period after the company's IPO in January.
According to Moneycontrol, discussions about the stake sale were first reported on July 13, indicating that Flipkart was likely to divest shares worth between ₹700 crore and ₹750 crore. Shadowfax clarified that it was unaware of any negotiations regarding the sale. Both Eight Roads and Flipkart participated in the IPO, where shares issued at ₹124 listed at ₹113, an 8% discount, though the stock price has since nearly doubled.
Background
Kotak Securities Ltd and Morgan Stanley India Co are acting as placement agents for the block deal, facilitating the sale for both Eight Roads and Flipkart. Investors will be monitoring the market's response to the block deal as it unfolds.
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The stake sale is likely to influence Shadowfax's stock performance, particularly as a significant portion of its shares becomes available for trading. Investors may react to the pricing and volume of shares sold, impacting the stock's liquidity and overall market sentiment. Watch for updates on the execution of the block deal and any subsequent market reactions.