Shadowfax Technologies IPO Opens January 20 with ₹1,907 Crore Issue; Grey Market Premium Indicates 12% Listing Gains

Shadowfax Technologies Limited is preparing to launch its Initial Public Offering worth ₹1,907 crore, scheduled to open for subscription on January 20, 2026. The Bengaluru-based logistics and last-mile delivery firm has set an attractive price band of ₹118-124 per share, with early market indicators suggesting strong investor interest ahead of the three-day subscription period. IPO Structure and Timeline The public offering combines fresh capital raising with existing shareholder divestment through a well-structured approach. The company will raise ₹1,000 crore through fresh equity issuance of 8.06 crore shares, while existing shareholders will divest 7.32 crore shares worth ₹907.27 crore through the offer for sale component. IPO Parameter Details Total Issue Size ₹1,907.27 crore Fresh Issue ₹1,000 crore (8.06 crore shares) Offer for Sale ₹907.27 crore (7.32 crore shares) Price Band ₹118-124 per share Subscription Period January 20-22, 2026 Basis of Allotment January 23, 2026 Expected Listing January 28, 2026 Grey Market Premium Analysis The grey market premium currently stands at ₹15 per share as of January 16, indicating robust pre-listing demand. At the upper price band of ₹124, this premium suggests a potential listing price of approximately ₹139 per share, translating to estimated gains of 12.10% for successful allottees. GMP Metrics Value Current Premium ₹15 per share Upper Price Band ₹124 per share Expected Listing Price ₹139 per share Potential Gains 12.10% Retail investors can participate with a minimum application of 120 shares, requiring an investment of ₹14,880 at the upper price band. All bids must be placed in multiples of the lot size. Fund Utilization Strategy Shadowfax Technologies has outlined a comprehensive deployment plan for the ₹1,000 crore fresh capital raise. The largest allocation of ₹423.43 crore will support capital expenditure requirements, particularly for strengthening and expanding the logistics network infrastructure. The company plans to invest ₹138.64 crore in lease payments for establishing new first-mile centers, last-mile centers, and sortation centers to enhance delivery efficiency. Fund Allocation Amount (₹ crore) Capital Expenditure 423.43 Lease Payments for Centers 138.64 Branding & Marketing 88.57 Inorganic Acquisitions Remaining funds General Corporate Purposes Remaining funds Additionally, ₹88.57 crore will be directed toward branding, marketing, and communication initiatives to strengthen brand visibility and expand customer reach across India's competitive logistics market. Company Performance and Market Position Founded in 2015, Shadowfax Technologies Limited has established itself as a significant player in India's logistics ecosystem. The company operates across more than 18,000 pin codes spanning over 2,500 cities, with the capability to process over two million packages daily. The firm specializes in rapid delivery services, including same-day and next-day delivery, doorstep exchange services, and quick-commerce solutions with delivery timelines as short as 10 minutes. The company demonstrated impressive financial performance in FY25, achieving substantial growth across key metrics. Total income increased by 32% to ₹2,515 crore compared to ₹1,897 crore in the previous year. More notably, EBITDA surged by 410% to ₹56 crore from ₹11 crore, while the company achieved profitability with a net profit of ₹6 crore in FY25. Financial Metrics FY25 Previous Year Growth Total Income ₹2,515 crore ₹1,897 crore +32% EBITDA ₹56 crore ₹11 crore +410% Net Profit ₹6 crore Loss Turned profitable The IPO is being managed by ICICI Securities Limited, Morgan Stanley India Company Private Limited, and JM Financial Limited as book-running lead managers, with KFin Technologies Ltd serving as the registrar to the issue. Shadowfax Technologies Limited, India's fastest growing technology-led third-party logistics (3PL) company, is set to launch its initial public offering worth ₹650.64 crores on January 20, 2026. The Bengaluru-based company operates across 14,758 Indian pin codes, serving enterprise clients in e-commerce, quick commerce, food marketplace, and on-demand mobility sectors through its extensive network of 4,299+ touchpoints. IPO Structure and Timeline The public offering consists entirely of a fresh issue with no offer for sale component. The three-day subscription window runs from January 20-22, 2026, with share allotment scheduled for January 23 and listing expected on January 28, 2026. Parameter Details Issue Size ₹650.64 crores (Fresh Issue) Opening Date January 20, 2026 Closing Date January 22, 2026 Allotment Date January 23, 2026 Listing Date January 28, 2026 Strong Financial Performance and Growth Trajectory Shadowfax Technologies has demonstrated robust revenue growth over the past three fiscal years, with total revenue expanding from ₹1,422.89 crores in FY2023 to ₹2,514.66 crores in FY2025. Most significantly, the company achieved profitability in FY2025 after reporting losses in previous years. Financial Metrics FY2023 FY2024 FY2025 Growth FY25 Revenue from Operations ₹1,415.12 cr ₹1,884.82 cr ₹2,485.13 cr 31.85% Total Revenue ₹1,422.89 cr ₹1,896.48 cr ₹2,514.66 cr 32.59% Profit After Tax (₹142.64 cr) (₹11.88 cr) ₹6.43 cr Profitable PAT Margin (10.03%) (0.63%) 0.26% - The company's balance sheet has strengthened considerably, with total assets growing from ₹442.73 crores in FY2023 to ₹1,259.26 crores in FY2025. Total equity increased from ₹176.32 crores to ₹660.43 crores over the same period. Use of IPO Proceeds The fresh issue proceeds will be allocated across three primary areas to support the company's expansion strategy. Network infrastructure development receives the largest allocation, reflecting Shadowfax's focus on strengthening its operational capabilities. Purpose Amount Description Network Infrastructure Capex ₹423.43 cr Automated sortation centers, IT infrastructure, asset procurement Lease Payments for New Centers ₹138.64 cr First mile, last-mile centers and sort centers Branding & Marketing ₹88.57 cr Marketing campaigns and brand-building initiatives Extensive Operational Network and Market Position Shadowfax operates India's largest crowdsourced last-mile delivery fleet among 3PL e-commerce players, with 205,864 average quarterly unique transacting delivery partners as of September 2025. The company has expanded its market share from approximately 8% in FY2022 to 21% in Q1 FY2026, establishing itself as a market leader in the technology-enabled logistics sector. The company's service portfolio includes express forward parcel deliveries, reverse pickups, hand-in-hand exchange deliveries, prime deliveries, quick commerce services, and on-demand hyperlocal deliveries. This comprehensive offering positions Shadowfax as the only 3PL of scale providing both end-to-end e-commerce delivery and last-mile quick commerce services. Risk Considerations Despite strong growth metrics, potential investors should consider several risk factors. The company faces significant client concentration risk, with its largest client contributing 48.91%-59.52% of revenue across different periods, while the top five clients account for 74.11%-84.96% of total revenue. Operational risks include dependence on crowdsourced delivery partners without exclusive arrangements, reliance on leased facilities totaling 3.50 million square feet, and exposure to cash-on-delivery operations representing 34.46%-47.00% of total orders. The company's performance remains closely tied to India's e-commerce industry growth and regulatory environment. Investment Outlook Shadowfax Technologies presents an opportunity to participate in India's expanding digital commerce ecosystem through a technology-enabled logistics platform. The company's achievement of profitability in FY2025, combined with strong revenue growth and extensive operational network, demonstrates its potential in the growing 3PL market. However, investors should carefully evaluate the concentration risks and operational dependencies before making investment decisions. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. 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