Logistics services provider Shadowfax is preparing to launch its ₹1,900 crore initial public offering next week, targeting a conservative valuation of ₹7,400 crore. The company is expected to announce the price band for its maiden public offering this week, marking a significant milestone for the e-commerce logistics sector.

IPO Structure and Valuation

Shadowfax is targeting a post-market valuation of approximately ₹7,400 crore, which represents a more conservative approach compared to previous estimates of ₹8,500 crore. This strategic pricing is aimed at attracting long-term institutional investors and ensuring sustainable market reception.

Existing Shareholders and OFS Participants

The offer for sale component will see several marquee investors and stakeholders offloading their shares. Key participants in the OFS include:

• 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
• Snapdeal founders Kunal Bahl and Rohit Kumar Bansal

Fund Utilization and Business Expansion

The proceeds from the fresh issue will be strategically deployed across multiple growth initiatives. The company plans to enhance its network infrastructure capacity and fund lease payments for new first mile, last mile, and sort centres. Additional funds will support branding, marketing, and communication initiatives, along with potential inorganic acquisitions and general corporate purposes.

Financial Performance and Market Position

Shadowfax has demonstrated robust financial growth in recent periods. The company reported revenue of approximately ₹1,800 crore for the first half of FY26, representing a substantial 68% year-on-year increase. Its total revenue stood at ₹2,485 crore in FY25.

Business Segments and Market Share

The company operates across multiple logistics segments with diversified revenue streams. The e-commerce express parcel segment serves as the primary revenue contributor, accounting for approximately 70% of the company's business. Hyperlocal and quick commerce logistics contribute around 20% of total revenue.

Shadowfax has significantly expanded its market presence, with its express parcel market share rising to about 21% in Q1 FY26, up sharply from around 8% in FY22 according to Redseer data. The company maintains a comprehensive service network covering 14,758 Indian pincodes as of September 2025.

Regulatory Approval and Market Entry

The company filed draft papers in late June with Sebi through a confidential pre-filing route and received regulatory approval in October. Following the approval of its updated draft red herring prospectus, Shadowfax is now positioned to proceed with its public market debut. The confidential pre-filing route has provided the company with flexibility in its IPO planning while maintaining discretion over public disclosure until later stages.

Logistics services provider Shadowfax is set to launch its ₹1,900 crore initial public offering next week, targeting a conservative valuation of ₹7,400 crore. The company is expected to announce the price band this week, positioning itself strategically to attract long-term institutional investors through measured pricing.

IPO Structure and Investor Participation

The public offering comprises two key components with significant participation from existing stakeholders:

The offer for sale includes participation from prominent investors 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 Strategic Initiatives

Shadowfax plans to deploy proceeds from the fresh issue across multiple growth areas. The company will focus on enhancing network infrastructure capacity, funding lease payments for new first mile, last mile, and sort centres. Additional allocations include branding and marketing initiatives, potential inorganic acquisitions, and general corporate purposes.

Strong Financial Performance and Market Position

The company demonstrated robust financial growth with impressive revenue expansion:

Shadowfax has significantly strengthened its market position, with express parcel market share rising to 21% in Q1 FY26 from 8% in FY22, according to Redseer data. The company operates across 14,758 Indian pincodes and serves diverse enterprise clients including horizontal and non-horizontal e-commerce, quick commerce, food marketplaces, and on-demand mobility companies.

Business Segments and Service Portfolio

The company's revenue streams are well-diversified across logistics segments:

• E-commerce express parcel segment: 70% of total business • Hyperlocal and quick commerce logistics: 20% of revenue • Value-added services: Remaining portion

Shadowfax offers comprehensive logistics solutions including express forward parcel deliveries, reverse pickups, on-demand hyperlocal services, and critical logistics solutions.

Regulatory Approval and Market Strategy

The company filed draft papers in June through a confidential pre-filing route with SEBI and received approval in October. This approach allows companies to withhold public disclosure of IPO details until later stages, providing greater flexibility in IPO planning. The updated draft red herring prospectus has been approved, clearing the path for the public offering launch.