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Shadowfax

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1. Shadowfax Technologies has entered the primary market with its much-anticipated Initial Public Offering (IPO), which opened for public subscription on January 20, 2026, and will close on January 22, 2026. The IPO has attracted attention due to the company’s strong association with Flipkart and its growing presence in India’s last-mile logistics ecosystem.
2. Founded as an asset-light logistics platform, Shadowfax focuses on hyperlocal deliveries, e-commerce logistics, and reverse logistics. Its business model allows it to scale operations without heavy capital expenditure, making it attractive in a rapidly expanding digital commerce market.
3. The company aims to raise a total of ₹1,907 crore through the IPO. This fundraising effort reflects Shadowfax’s ambition to strengthen its infrastructure, expand capacity, and capitalize on rising demand for fast and reliable delivery services across India.
4. The IPO is priced in a band of ₹118 to ₹124 per equity share, offering investors an opportunity to participate at a valuation that balances growth expectations with profitability potential. The pricing suggests confidence in the company’s long-term scalability.
5. Each application lot consists of 120 shares, meaning a minimum investment of ₹14,880 at the upper price band. This keeps the entry barrier reasonable for retail investors while maintaining adequate ticket size for institutional participants.
6. Structurally, the IPO includes a fresh issue of ₹1,000 crore and an Offer for Sale (OFS) worth ₹907 crore. The fresh issue will bring new capital into the business, while the OFS allows early investors to partially monetize their holdings.
7. The company successfully raised ₹856 crore from anchor investors on January 19, 2026. A total of 39 institutional investors participated, including reputed global names such as ICICI Prudential, Morgan Stanley, and Norges Bank, indicating strong institutional confidence.
8. As of the afternoon of January 21, 2026 (Day 2), the IPO was subscribed around 60% overall, reflecting a steady but not overheated response from the market. This indicates selective investor participation rather than speculative frenzy.
9. The retail investor segment has shown notable enthusiasm, with subscriptions exceeding 1.7 times the allocated quota. This highlights retail confidence in the company’s brand, growth story, and association with major e-commerce platforms.
10. Grey Market Premium (GMP) trends suggest a cautious market mood. With GMP currently hovering around ₹4–₹6, the expected listing gain is estimated at 3%–5%, pointing toward a stable but modest debut rather than a sharp pop.
11. At the upper end of the price band, Shadowfax commands a valuation of approximately ₹7,169 crore. Some analysts consider this valuation relatively premium when compared with listed peers such as Delhivery, especially given Shadowfax’s shorter profitability track record.
12. A key positive is that Shadowfax reported profitability in FY25, posting a net profit of ₹6.4 crore. This transition from losses to profitability is seen as a crucial milestone for investor confidence in a logistics startup.
13. The company plans to utilize the fresh issue proceeds to expand its logistics network, including setting up additional sortation centers and strengthening its nationwide delivery infrastructure to improve efficiency and coverage.
14. A portion of the funds will also be used to meet lease obligations for new delivery facilities, which supports its asset-light strategy while enabling faster geographic expansion without heavy asset ownership.
15. Shadowfax has also earmarked capital for branding, marketing, and customer acquisition, along with exploring inorganic growth opportunities through potential acquisitions that could complement its existing capabilities.
16. Overall, the Shadowfax Technologies IPO presents a mix of growth potential and valuation caution. While modest listing gains are expected, long-term investors will closely watch execution, profitability consistency, and competitive positioning in India’s evolving logistics sector.
The Shadowfax Technologies IPO is currently open for subscription as of January 21, 2026. The company, an asset-light logistics provider backed by Flipkart, is aiming to raise ₹1,907 crore. 
Key IPO Details
  • Subscription Period: January 20 – January 22, 2026.
  • Price Band: ₹118 – ₹124 per equity share.
  • Lot Size: 120 shares (Minimum investment of ₹14,880 at the upper band).
  • Issue Composition: Includes a fresh issue of ₹1,000 crore and an Offer for Sale (OFS) of ₹907 crore from existing shareholders.
  • Allotment & Listing: Allotment is expected on January 23, with a tentative listing on BSE and NSE on January 28, 2026. 
Subscription Status (as of Jan 21, 2026)
The issue has seen a healthy overall response, currently subscribed at approximately 60% by the afternoon of Day 2. 
  • Retail Segment: Fully subscribed (over 1.7x).
  • Anchor Investors: Raised ₹856 crore on January 19 from 39 investors, including ICICI Prudential, Morgan Stanley, and Norges Bank. 
Market Sentiment & Valuation
  • Grey Market Premium (GMP): Market sentiment has cooled slightly; the GMP is currently around ₹4–₹6, suggesting a modest listing gain of roughly 3%–5% over the upper price band.
  • Valuation: At the upper price band, the company is valued at roughly ₹7,169 crore. Analysts have noted that while the company turned profitable in FY25 (₹6.4 crore profit), its valuation is relatively high compared to peers like Delhivery. 
Strategic Objectives
The company plans to use the fresh capital for:
  • Expanding network infrastructure and sortation centers.
  • Funding lease payments for new delivery facilities.
  • Scaling branding and marketing initiatives.
  • Potential inorganic growth through acquisitions. 
For official disclosures, you can visit the Shadowfax Investor Relations page or check the KFin Technologies Allotment Portal once finalization occurs.

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