Shadowfax Technologies IPO opens Jan 20: Price band Rs 118–124, Key details inside

Logistics and delivery startup Shadowfax Technologies has fixed the price band for its upcoming initial public offering (IPO) at Rs 118-124 per equity share, with a face value of Rs 10.

The public issue will open for subscription on Tuesday, January 20, and close on Thursday, January 22, while anchor investor bidding is scheduled for Monday, January 19.

The IPO is sized at Rs 1,907.3 crore and comprises a fresh issue of shares worth Rs 1,000 crore, alongside an offer for sale of Rs 907.3 crore by existing shareholders. Shares are expected to list on the BSE and NSE on Wednesday, January 28.

Under the issue structure, 75% of the shares are reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. The minimum bid size is 120 equity shares, and bids can be made in multiples thereafter.

The basis of allotment is expected to be finalised on Friday, January 23, with refunds and credit of shares to demat accounts scheduled for January 27.

Proceeds from the fresh issue will be deployed primarily towards business expansion. Shadowfax plans to invest Rs 423.4 crore in enhancing its network infrastructure, including first-mile, last-mile and sorting capabilities. Another Rs 138.6 crore has been earmarked for lease payments for new first-mile centres, last-mile centres and sort centres.

The company will also spend Rs 88.5 crore on branding, marketing and communication initiatives, with the remaining funds allocated towards inorganic acquisitions and general corporate purposes.

The offer-for-sale includes shares being sold by several prominent investors, including Flipkart Internet, Eight Roads Investments Mauritius, International Finance Corporation, Qualcomm Asia Pacific, Nokia Growth Partners, NewQuest Asia Fund and Mirae Asset. Among the largest shareholders, Flipkart Internet holds a 14.83% stake, followed by Eight Roads Investments Mauritius at 14.15% and NewQuest Asia Fund at 14.08%.

Founders and promoters Abhishek Bansal and Vaibhav Khandelwal own 10.76% and 8.37% of the company, respectively. Snapdeal cofounders Kunal Bahl and Rohit Kumar Bansal are also among the selling shareholders.

At the upper end of the price band, the IPO is valued at a price-to-earnings multiple of 952.79x based on FY25 diluted earnings per share, significantly higher than the weighted average industry P/E of 122.88x. Listed peers include Blue Dart Express Ltd, which trades at a P/E of 50.70, and Delhivery Ltd, with a P/E of 195.07.

Founded as a third-party logistics provider with a strong technology backbone, Shadowfax focuses on e-commerce express parcel delivery alongside services such as hyperlocal and quick commerce logistics, reverse logistics, and direct-to-consumer deliveries.

It also offers same-day and intra-city courier services through its Shadowfax Flash app. As of September 30, 2025, the company operated a nationwide logistics network spanning 4,299 touchpoints across 14,758 pin codes. Its infrastructure includes over 3.50 million square feet of operational space, with 53 sort centres accounting for 1.80 million square feet dedicated to shipment consolidation, sorting and dispatch.

The company has reported a sharp improvement in financial performance over the past year. For the six-month period ended September 2025, Shadowfax posted a profit of Rs 21 crore, nearly 114% higher than Rs 9.8 crore in the corresponding period a year earlier.

Revenue during the period rose 68.4% year-on-year to Rs 1,805.6 crore. For FY25, the company reported a net profit of Rs 6.4 crore, compared with a loss of Rs 11.8 crore in the previous year, while revenue grew 31.8% to Rs 2,485.1 crore.

ICICI Securities, Morgan Stanley India Company and JM Financial are acting as the book-running lead managers for the issue, while KFin Technologies Ltd has been appointed as the registrar.