Shadowfax Tech IPO Day 2: Issue Receives 55% Subscription So Far, GMP Falls; Should You Apply?

Shadowfax Technologies IPO Day 2: The initial public offering (IPO) of Shadowfax Technologies Ltd is witnessing its second day of bidding today, Wednesday, January 21. The price band of the Rs 1,907-crore IPO has been fixed in the range of Rs 118 to Rs 124 apiece. Till 10:35 am on the second day of bidding on Wednesday, the IPO received a 0.55x subscription, garnering bids for 4,67,32,800 shares as against 8,47,78,062 shares on offer.

Its retail category got a 1.41x subscription, while its non-institutional investor (NII) quota got a 0.28x subscription. Its qualified institutional buyer (QIB) category has received a 0.40x subscription.

Shadowfax Technologies IPO GMP Today

According to market observers, unlisted shares of Shadowfax Technologies

Ltd were trading at Rs 128 apiece in the grey market, which is a 3.23 per cent premium over the upper IPO price of Rs 124. It indicates a subdued listing. Its listing will take place on January 28, Wednesday.

The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Shadowfax Technologies IPO: Should You Apply?

Swastika Investmart said Shadowfax is well placed to ride the strong growth potential in India’s last-mile logistics and e-commerce delivery space. While the company’s revenue trajectory has been improving, profitability remains subdued and margin visibility is still evolving. At a price-to-sales multiple of around 2.8x, the IPO appears to be valued at a premium compared with listed peer Delhivery.

The brokerage also flagged customer concentration as a key risk, noting that a significant share of revenue is derived from just two clients — Flipkart, which is also an investor in the company, and Meesho. Given these factors, Swastika Investmart said the issue is suitable only for high-risk investors with a long-term horizon, while conservative investors may be better off tracking the stock post listing for clearer price discovery.

SMIFS, meanwhile, highlighted Shadowfax’s diversified service offerings — ranging from forward deliveries and reverse logistics to hand-in-hand exchanges, prime deliveries and hyperlocal fulfilment — as a strength. According to the brokerage, these services create high switching costs and offer scope to deepen wallet share with large clients such as Flipkart, Meesho, Zepto and Swiggy.

SMIFS added that sustained network expansion, with plans to add more than 2,160 delivery centres by FY27, along with initiatives to improve operational efficiency and monetise excess capacity in higher-margin segments such as BFSI and cross-border logistics, could support meaningful value creation over the medium to long term.

Shadowfax Technologies IPO Structure

The IPO will comprise a fresh issue of shares worth Rs 1,000 crore and an offer for sale (OFS) of Rs 907.27 crore by existing shareholders. This takes the total issue size to Rs 1,907.27 crore.

As part of the OFS, Flipkart Internet, Eight Roads Investments Mauritius II Ltd, NewQuest Asia Fund IV (Singapore) Pte. Ltd, Nokia Growth Partners IV, L.P, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific Pte. Ltd and Snapdeal founders — Kunal Bahl and Rohit Kumar Bansal — would offload shares.

Shadowfax Technologies IPO Fund Utilisation

The company proposes to utilise proceeds from the fresh issue towards funding enhancing capacity in terms of network infrastructure, funding of lease payments for new first mile, last mile, and sort centres, as well as towards branding, marketing, and communication initiatives, unidentified inorganic acquisitions, and general corporate purposes.

Shadowfax Technologies IPO: Other Details

Shadowfax is backed by marquee investors such as Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures, and Nokia Growth Funds. It is India’s leading logistics service provider for e-commerce express parcel and value-added services. It has a service network encompassing 14,758 Indian pin codes as of September 2025.

The company serves a wide range of enterprise clients, including horizontal and non-horizontal e-commerce, quick commerce, food marketplaces, and on-demand mobility companies. It offers express forward parcel deliveries, reverse pickups, and on-demand hyperlocal and critical logistics solutions.

Shares of Shadowfax are expected to list on January 28 on the bourses.

The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

For the first half of FY26, Shadowfax reported a revenue of about Rs 1,800 crore, marking a 68 per cent year-on-year increase. Its total revenue stood at Rs 2,485 crore in FY25.

The e-commerce express parcel segment is the major revenue contributor, accounting for around 70 per cent of the company’s business, while around 20 per cent of revenue comes from hyperlocal and quick commerce logistics.

Shadowfax’s express parcel market share rose to about 21 per cent in Q1 FY26, up sharply from around 8 per cent in FY22, according to data from Redseer.

The firm filed draft papers in late June with the markets regulator Sebi for an IPO through a confidential pre-filing route and had received Sebi’s approval in October.

The company opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the DRHP until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans.