Private equity giant TPG has executed another open-market sale of Shadowfax shares worth ₹113.6 crore, continuing its recent stake reduction in the rapidly growing Indian logistics startup.
- TPG sold 40 lakh Shadowfax shares at ₹284.03 each, totaling ₹113.6 crore
- Shadowfax shares up over 143% in six months on strong Q1 FY27 results
- Company raised FY27 revenue growth forecast to 38-40% from 28-30%
What happened
Private equity firm TPG, through its NewQuest Asia Fund IV entity, sold 40 lakh shares of Shadowfax in an open-market bulk deal valued at ₹113.6 crore. The shares were sold at ₹284.03 each, a premium of 1.3% to the last closing price of the stock. This transaction adds to TPG's recent stake reduction efforts in Shadowfax, having offloaded shares worth ₹200 crore in September and ₹300 crore in August.
The buyer details of the transaction remain undisclosed amid the market activity. These sales come at a time when Shadowfax shares have experienced significant upward momentum, hitting a record high of ₹291.90 on September 24, reflecting positive investor sentiment towards the logistics company's prospects.
Why it matters
Shadowfax's stock price has surged by over 143% in the past six months and by more than 14% in the last month alone, underpinned by strong quarterly financial performance. In Q1 FY27, the logistics firm reported an eightfold increase in consolidated net profit to ₹65.4 crore, alongside a 65% year-on-year revenue growth reaching ₹1,358.1 crore. These results reinforce Shadowfax’s rapid growth trajectory and operational efficiency.
Following these strong results, Shadowfax revised its revenue growth forecast for FY27 upwards to 38-40%, a notable increase from the previous guidance range of 28-30%. The startup's expansion plans, such as increasing its dark store network from 47 to 100 by March 2027 and deepening its footprint in quick commerce, position the company well for continued market growth.
What to watch next
Investors will closely monitor Shadowfax’s ability to sustain its strong financial momentum and translate growth initiatives into further market share gains. Continued shareholder activity, especially by major backers like TPG, may influence market sentiment and share price directions in the near term.
Shadowfax's strategic execution around expanding its logistics network, particularly in quick commerce and D2C delivery segments, will be critical to watch. Market participants will also look for updates on the company's operational metrics and how it navigates competitive dynamics in the Indian logistics sector.