Shadowfax Technologies' initial public offering opened for public bidding on January 20, achieving a 4% subscription rate on the first day. The Bengaluru-based logistics solutions provider received bids for 39.80 lakh shares against an offer size of 8.91 crore shares, according to NSE data at 10:20 am.

Subscription Details by Investor Category

Retail investors demonstrated the strongest interest in the IPO, with subscription patterns varying significantly across investor categories:

Grey Market Premium Shows Declining Trend

The company's grey market premium has experienced a notable decline in recent days. According to Investorgain data, Shadowfax's unlisted shares were trading with a 4.84% grey market premium over the IPO price, representing a significant drop from previous levels.

IPO Watch reported a slightly higher grey market premium of 6.45% over the IPO price, indicating some variation in grey market assessments.

IPO Structure and Pricing

The ₹1,907.20 crore public offering comprises both fresh capital raising and existing investor exits:

The IPO remains open for public bidding until January 22, with allotments expected to be finalized by January 23 and listing scheduled for January 28.

Anchor Investor Participation

Prior to the public offering, Shadowfax successfully raised ₹856.02 crore from 39 anchor investors on January 19. The anchor book allocation included significant participation from domestic mutual funds:

ICICI Prudential AMC emerged as the largest anchor investor, acquiring 1.53 crore equity shares through four schemes including Flexicap Fund, Balanced Advantage Fund, Transportation and Logistics Fund, and Exports and Services Fund.

Fund Utilization Plans

The company plans to deploy proceeds from the fresh issue across multiple strategic initiatives:

• Network infrastructure capacity enhancement
• Lease payments for new first mile, last mile, and sort centres
• Branding, marketing, and communication initiatives
• Unidentified inorganic acquisitions
• General corporate purposes

The technology-led logistics solutions provider serves the rapidly expanding e-commerce and quick commerce sectors, positioning itself to benefit from the structural growth in India's logistics ecosystem.

Shadowfax Technologies, a prominent third-party logistics (3PL) company, is set to launch its initial public offering (IPO) to raise ₹1,907.30 crores, marking a significant milestone for the logistics sector. The company plans to raise ₹1,000 crores through a fresh issue and ₹907.30 crores through an offer for sale, with proceeds earmarked for lease payments, branding and marketing expenses, and capital expenditure.

Strong Financial Performance Drives IPO Plans

The company has demonstrated robust financial growth in recent quarters. For the six months ended September 2025, Shadowfax reported impressive year-on-year improvements across key metrics:

The company's transformation from losses to profitability has been remarkable. Between FY23 and FY25, revenue grew at an annual rate of 32.50% to reach ₹2,485.10 crores. More significantly, Shadowfax reported a net profit of ₹6.40 crores in FY25, a dramatic turnaround from the net loss of ₹142.60 crores in FY23.

Market Leadership and Operational Scale

Shadowfax has established itself as a market leader in the 3PL space, particularly in specialized services. The company's market share in e-commerce shipments nearly trebled to 23% in the first half of FY26 from 8% in FY22, demonstrating strong competitive positioning. It holds the distinction of being the largest 3PL company in terms of same-day delivery and reverse pick-up volume.

The company's operational infrastructure reflects its scale and reach:

Incorporated in 2015, Shadowfax offers comprehensive e-commerce express parcel delivery and value-added services including reverse pick-up and same-day delivery. The company distinguishes itself as the only 3PL company among its peers to offer a two-wheeler fleet to online mobility platforms.

Revenue Composition and Client Portfolio

Shadowfax's revenue streams are diversified across different logistics services. Approximately two-thirds of revenue comes from express services, which includes e-commerce operations, while 20% originates from hyperlocal or quick commerce services. The remaining revenue is generated from other logistics services. The higher e-commerce share is particularly favorable as it offers better margins.

The company serves a prestigious client portfolio including major e-commerce and quick commerce platforms such as Meesho, Flipkart, Myntra, Swiggy, Bigbasket, Zepto, Nykaa, Blinkit, Zomato, and Uber. However, nearly half of its revenue comes from one client, Meesho, indicating revenue concentration risk.

IPO Valuation and Market Positioning

Post-IPO, the promoter group's stake will decrease to 16.70% from the current 19.40%. Based on the post-IPO equity and annualized profit for FY26, the price-to-earnings ratio works out to 170, compared with the range of 50-372 for listed peers Blue Dart Express and Delhivery. The price-to-sales multiple stands at 2, aligning with the peer range of 2-3.

The IPO comes at a time when the e-commerce and quick commerce segments are experiencing increased traction, positioning Shadowfax to capitalize on the growing demand for logistics services in these high-growth sectors.