Shadowfax Technologies IPO opens today: GMP and key things investors should know

Mumbai | January 20

Logistics services provider Shadowfax Technologies Ltd has opened its initial public offering for public subscription today, seeking to capitalise on the rapid expansion of India’s e-commerce and quick-commerce delivery ecosystem.

Here are 11 key things investors should know before bidding:

1. IPO size and structure

The IPO is sized at ₹1,907.3 crore, comprising a fresh issue of ₹1,000 crore and an offer for sale (OFS) of ₹907.27 crore by existing shareholders. Early institutional backers like Flipkart, Mirae Asset, NewQuest and Eight Roads are offloading their investment through the IPO.

2. Price band and lot size

Shadowfax has fixed the price band at ₹118–₹124 per share. Investors can apply in lots of 120 shares, translating to a minimum investment of ₹14,880 at the upper end of the price band.

3. Important dates

• IPO open: January 20–22
• Allotment: January 23 (tentative)
• Refunds & share credit: January 27
• Listing: January 28 on BSE and NSE (tentative)

The IPO is being managed by ICICI Securities, Morgan Stanley India, and JM Financial, with KFin Technologies acting as the registrar.

To Apply for Shadowfax IPO click here!

4. Anchor investors

Ahead of the issue opening, Shadowfax raised ₹856 crore from anchor investors by allotting 6.90 crore equity shares at ₹124 apiece.

Domestic mutual funds formed the bulk of the anchor book, accounting for over 53% of the allocation, led by schemes from ICICI Prudential Mutual Fund, Nippon India, Motilal Oswal, Bandhan, HSBC, Edelweiss, JM Financial, and Trust Mutual Fund.

Global investors such as Government Pension Fund Global, BoFA Securities, Societe Generale, HSBC Global Investment Funds, Jupiter India Fund, Eastspring Investments, and Morgan Stanley Asia also participated.

5. Grey market premium remains modest

In the unofficial market, Shadowfax shares are trading at a grey market premium (GMP) of around ₹6, implying a potential listing price near ₹130, or a premium of nearly about 5% over the issue price. Grey market activity has moderated in recent sessions. 

Note: Grey market prices are unofficial and only indicate market sentiment.

6. Use of IPO proceeds
Proceeds from the fresh issue will be used to:

• To strengthen network infrastructure : ₹423.4 crore
  • For lease payments for new first-mile, last-mile and sorting centres: ₹138.6 crore
  • Towards branding, marketing and communication: ₹88.5 crore
  • Balance for acquisitions and general corporate purposes

7. About the company

Founded in 2015, Shadowfax operates an asset-light logistics platform focused on last-mile, hyperlocal, and express parcel deliveries, catering to e-commerce, food delivery, and quick-commerce companies across India.

8. Scale of operations

As of September 2025, the company had a presence across 14,700+ pin codes in more than 2,300 cities, supported by 4,200+ touchpoints and over 3,000 leased trucks operating daily. That reach has given them an edge to capture about 23% of the market share in third party logistics in FY25

9. Financial growth trajectory

Shadowfax reported a 68% year-on-year rise in operating revenue to ₹1,805 crore in the first half of FY26. Net profit more than doubled to ₹21 crore, compared with ₹9.8 crore a year earlier. For FY25, the company posted a profit of ₹6.4 crore, marking a turnaround from losses in earlier years.Despite the turnaround, logistics remains a high-volume, low-margin business. The company reported an adjusted EBITDA margin of below 3% in H1 FY26.

10. Key risks to watch

Nearly 49% of revenue in the latest reported period came from a single customer, highlighting client concentration risk. Rising lost-shipment costs and reliance on delivery partners also remain key operational risks.

11. Valuation

Based on annualised H1 FY26 numbers, the IPO implies an EV/EBITDA multiple of around 65.5x, reflecting expectations of sustained high growth but also factoring in thin operating margins and client concentration risks.

By comparison, listed peer Delhivery trades at an EV/EBITDA multiple of about 56.5x on FY26 estimates, supported by its larger scale and stronger margin profile, while Blue Dart Express commands a premium valuation due to its profitability and established network.

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