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What is the story about?
The ₹1,907 crore initial public offering (IPO) of logistics services provider Shadowfax Technologies will open for subscription on Tuesday, January 20, and close on January 22.
Ahead of the issue opening, Shadowfax has raised ₹856.02 crore from anchor investors including ICICI Prudential MF, Nippon India MF, Motilal Oswal MF, Government Pension Fund Global, Edelweiss MF, Morgan Stanley Asia (Singapore) PTE – ODI, BoFA Securities Europe SA - ODI, HSBC MF, among others.
What should investors do?
SBI Securities has assigned a 'Neutral' rating to the issue and said it would prefer to track the stock's performance after listing.
At the upper price band, the IPO is valued at EV/Sales of 2.4x and EV/EBITDA of 106.5x. The brokerage pointed to Shadowfax's strong revenue CAGR of 32.5% over FY23-25 and said that the company has been EBITDA-positive since FY24.
It also referred to the firm's asset-light and scalable business model, with an asset turnover of over 4x, supported by leased infrastructure and an outsourced delivery fleet.
SBI Securities added that India's low per-capita shipment volume of 3-5 parcels, compared with 60-70 in the US and 75-85 in China, offers a long runway for growth. However, when compared with peers, the issue appears to be priced at a slight premium.
Swastika Securities has also given a 'Neutral' rating, stating that the IPO is suitable only for high-risk, long-term investors, while conservative investors may consider waiting for better price discovery post listing.
The brokerage flagged revenue concentration risks, citing that a large share of Shadowfax's revenue comes from just two clients, Flipkart, which is also an investor, and Meesho.
While the company stands to benefit from strong growth in India's last-mile logistics and e-commerce delivery space, Swastika Securities said profitability remains modest and margin visibility is still evolving.
Key risks
Analysts said revenue concentration as a key risk, with the company's largest client accounting for 49% and 48% of revenue in H1FY26 and FY26, respectively. Any loss of such relationships could materially impact the business.
Shadowfax also relies on a crowdsourced network of delivery partners without exclusive arrangements, exposing it to manpower-related disruptions such as strikes or supply shortages.
Operational risks include potential mishandling of goods by delivery partners, which could hurt service quality and client relationships.
Payment-related risks also persist, as around 35% of orders were cash-on-delivery in H1FY26. While the total financial impact of past cash-related incidents was limited to about ₹3.2 crore, handling cash continues to pose an operational challenge.
Shadowfax IPO price band
The Bengaluru-based company has set a price band of ₹118 to ₹124 per share. Investors can apply for a minimum lot of 120 shares, requiring an investment of ₹14,880 at the upper end of the band. Through the IPO, the company is targeting a valuation of around ₹7,170 crore.
IPO structure and use of proceeds
The IPO comprises a fresh issue of shares worth ₹1,000 crore and an offer for sale of ₹907 crore by existing shareholders. Of the total issue size, 75% is reserved for Qualified Institutional Buyers, 15% for Non-Institutional Investors and 10% for retail investors.
Under the OFS, shareholders including Flipkart Internet, Eight Roads Investments Mauritius II Ltd, NewQuest Asia Fund IV, Nokia Growth Partners IV, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific and Snapdeal founders Kunal Bahl and Rohit Kumar Bansal will divest part of their holdings.
Proceeds from the fresh issue will be used to expand network infrastructure, fund lease payments for new first-mile, last-mile and sorting centres, support branding and marketing initiatives, pursue unidentified inorganic acquisitions and meet general corporate purposes.
Business overview
Shadowfax is backed by marquee investors such as Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures and Nokia Growth Funds. The company operates a nationwide logistics network covering 14,758 pincodes as of September 2025.
It serves enterprise clients across e-commerce, quick commerce, food marketplaces and on-demand mobility, offering express forward parcel deliveries, reverse logistics, hyperlocal and critical logistics solutions.
For H1FY26, Shadowfax reported revenue of around ₹1,800 crore, a 68% year-on-year jump, while total revenue stood at ₹2,485 crore in FY25. The e-commerce express parcel segment contributes about 70% of overall revenue, with hyperlocal and quick commerce logistics accounting for roughly 20%.
ICICI Securities, Morgan Stanley India Company and JM Financial are the book running lead managers to the issue, while KFin Technologies is the registrar.
The IPO allotment is expected to be finalised on January 23, with the stock slated to debut on the exchanges on January 28.
Ahead of the issue opening, Shadowfax has raised ₹856.02 crore from anchor investors including ICICI Prudential MF, Nippon India MF, Motilal Oswal MF, Government Pension Fund Global, Edelweiss MF, Morgan Stanley Asia (Singapore) PTE – ODI, BoFA Securities Europe SA - ODI, HSBC MF, among others.
What should investors do?
SBI Securities has assigned a 'Neutral' rating to the issue and said it would prefer to track the stock's performance after listing.
At the upper price band, the IPO is valued at EV/Sales of 2.4x and EV/EBITDA of 106.5x. The brokerage pointed to Shadowfax's strong revenue CAGR of 32.5% over FY23-25 and said that the company has been EBITDA-positive since FY24.
It also referred to the firm's asset-light and scalable business model, with an asset turnover of over 4x, supported by leased infrastructure and an outsourced delivery fleet.
SBI Securities added that India's low per-capita shipment volume of 3-5 parcels, compared with 60-70 in the US and 75-85 in China, offers a long runway for growth. However, when compared with peers, the issue appears to be priced at a slight premium.
Swastika Securities has also given a 'Neutral' rating, stating that the IPO is suitable only for high-risk, long-term investors, while conservative investors may consider waiting for better price discovery post listing.
The brokerage flagged revenue concentration risks, citing that a large share of Shadowfax's revenue comes from just two clients, Flipkart, which is also an investor, and Meesho.
While the company stands to benefit from strong growth in India's last-mile logistics and e-commerce delivery space, Swastika Securities said profitability remains modest and margin visibility is still evolving.
Key risks
Analysts said revenue concentration as a key risk, with the company's largest client accounting for 49% and 48% of revenue in H1FY26 and FY26, respectively. Any loss of such relationships could materially impact the business.
Shadowfax also relies on a crowdsourced network of delivery partners without exclusive arrangements, exposing it to manpower-related disruptions such as strikes or supply shortages.
Operational risks include potential mishandling of goods by delivery partners, which could hurt service quality and client relationships.
Payment-related risks also persist, as around 35% of orders were cash-on-delivery in H1FY26. While the total financial impact of past cash-related incidents was limited to about ₹3.2 crore, handling cash continues to pose an operational challenge.
Shadowfax IPO price band
The Bengaluru-based company has set a price band of ₹118 to ₹124 per share. Investors can apply for a minimum lot of 120 shares, requiring an investment of ₹14,880 at the upper end of the band. Through the IPO, the company is targeting a valuation of around ₹7,170 crore.
IPO structure and use of proceeds
The IPO comprises a fresh issue of shares worth ₹1,000 crore and an offer for sale of ₹907 crore by existing shareholders. Of the total issue size, 75% is reserved for Qualified Institutional Buyers, 15% for Non-Institutional Investors and 10% for retail investors.
Under the OFS, shareholders including Flipkart Internet, Eight Roads Investments Mauritius II Ltd, NewQuest Asia Fund IV, Nokia Growth Partners IV, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific and Snapdeal founders Kunal Bahl and Rohit Kumar Bansal will divest part of their holdings.
Proceeds from the fresh issue will be used to expand network infrastructure, fund lease payments for new first-mile, last-mile and sorting centres, support branding and marketing initiatives, pursue unidentified inorganic acquisitions and meet general corporate purposes.
Business overview
Shadowfax is backed by marquee investors such as Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures and Nokia Growth Funds. The company operates a nationwide logistics network covering 14,758 pincodes as of September 2025.
It serves enterprise clients across e-commerce, quick commerce, food marketplaces and on-demand mobility, offering express forward parcel deliveries, reverse logistics, hyperlocal and critical logistics solutions.
For H1FY26, Shadowfax reported revenue of around ₹1,800 crore, a 68% year-on-year jump, while total revenue stood at ₹2,485 crore in FY25. The e-commerce express parcel segment contributes about 70% of overall revenue, with hyperlocal and quick commerce logistics accounting for roughly 20%.
ICICI Securities, Morgan Stanley India Company and JM Financial are the book running lead managers to the issue, while KFin Technologies is the registrar.
The IPO allotment is expected to be finalised on January 23, with the stock slated to debut on the exchanges on January 28.
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