Shadowfax IPO got Negative Listing gains

Hello Hive Fam!

Hope life is treating you well wherever you are in this part of the world.

Last week, I posted about an IPO in this blog, and I talked about the company called Shadowfax Technologies. This is a logistics company that opened its IPO for the general public, and the stock is listed on the market. I was not lucky enough to get the allocation for this IPO, and I applied for two lots. The per share price was INR 124, and a minimum of 120 shares was required in one lot. Therefore, anyone who applied for the IPO had to invest a minimum of INR 14,880.

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I applied for two lots because with a higher number of lots, the possibility to get the allocation is also higher And I was not lucky enough to get the allocation so I was slightly sad when this allocation was revealed a few days back. today when the stock is listed on the market, the price less by 12% than the IPO price. Now I am happy that I did not get the allocations, else I would have lost 12% of my money just in a matter of a few days. I understand that investing on IPO is risky and there is no guarantee that every listing will be profitable, but in 2025, my success ratio was good.

This is a popular logistics company, and it is also backed by a leading e-commerce giant called flipkart So there were chances that the stock listing will be happening with some premium, but not clear what went wrong, and it happened with 12% discount on the IPO Share Price. logistic a very rough industry Where profitability is also very competitive because of so many players in the market, and since this company primarily deals with e-commerce platforms, their business model is kind of stable. Probably because of this reason, people thought that investing in this company could be a good decision.

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Overall, there is a loss of 9.19% on the listing price, and for me, it was a short-term stock, so I have no plan to buy this now. Choosing a gem through IPO is not easy, and before I go for investing in IPO, I also go through the balance sheet, cash flow, and debt, etc. It's a good example that despite looking through thorough fundamentals, an investment can be loss-making. This is why we should always diversify and never invest everything in one asset/company, even if it looks too good. I am glad that I did not lose anything because I did not get the allocation, but many people lost money on this IPO.

What strategy do you follow for investing in Stocks or IPO?

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