Shadowfax IPO to Launch Next Week Targeting Rs 7,400 Crore Valuation
Shadowfax is launching its Rs 1,900 crore IPO next week targeting Rs 7,400 crore valuation, comprising Rs 1,000 crore fresh issue and Rs 900 crore OFS by existing shareholders including Flipkart and other marquee investors. The logistics provider reported strong H1 FY26 revenue of Rs 1,800 crore with 68% YoY growth and increased its express parcel market share to 21% in Q1 FY26. The company plans to use proceeds for network infrastructure expansion, new facilities, and strategic acquisitions.
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Logistics services provider Shadowfax is set to launch its Rs 1,900 crore initial public offering next week, targeting a valuation of Rs 7,400 crore. The company is expected to announce the price band of its maiden public offering this week, with the targeted post-market valuation being lower than previous estimates of Rs 8,500 crore in what is being positioned as a more conservative pricing approach aimed at attracting long-term institutional investors.
IPO Structure and Shareholding Details
The proposed IPO will comprise two components as detailed below:
| Component | Amount |
|---|---|
| Fresh Issue of Shares | Rs 1,000 crore |
| Offer for Sale (OFS) | Rs 900 crore |
| Total IPO Size | Rs 1,900 crore |
As part of the OFS, several prominent shareholders will offload their stakes, including Flipkart Internet, Eight Roads Investments Mauritius II Ltd, NewQuest Asia Fund IV (Singapore) Pte. Ltd, Nokia Growth Partners IV, L.P, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific Pte. Ltd, and Snapdeal founders Kunal Bahl and Rohit Kumar Bansal.
Fund Utilization and Business Expansion
Shadowfax proposes to utilize proceeds from the fresh issue towards multiple strategic initiatives:
- Enhancing capacity in terms of network infrastructure
- Funding lease payments for new first mile, last mile, and sort centres
- Branding, marketing, and communication initiatives
- Unidentified inorganic acquisitions
- General corporate purposes
The company operates India's leading logistics service network for e-commerce express parcel and value-added services, with coverage spanning 14,758 Indian pincodes as of September 2025.
Financial Performance and Market Position
Shadowfax has demonstrated robust financial growth across recent periods:
| Period | Revenue | Growth |
|---|---|---|
| H1 FY26 | Rs 1,800 crore | 68% YoY |
| FY25 | Rs 2,485 crore | - |
The company's market position has strengthened significantly, with its express parcel market share rising to approximately 21% in Q1 FY26, up sharply from around 8% in FY22, according to data from Redseer.
Business Segments and Revenue Mix
Shadowfax serves a diverse range of enterprise clients including horizontal and non-horizontal e-commerce, quick commerce, food marketplaces, and on-demand mobility companies. The company's revenue is primarily driven by:
- E-commerce express parcel segment: Approximately 70% of total business
- Hyperlocal and quick commerce logistics: Around 20% of revenue
The company offers comprehensive logistics solutions including express forward parcel deliveries, reverse pickups, on-demand hyperlocal and critical logistics solutions.
Regulatory Approvals and Market Entry
Shadowfax filed draft papers in late June with markets regulator SEBI for an IPO through a confidential pre-filing route and received SEBI's approval in October. The company has since received approval for its updated draft red herring prospectus (UDRHP). The confidential pre-filing route allows companies to withhold public disclosure of IPO details under the DRHP until later stages, providing flexibility in IPO planning.
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