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.

Shadowfax Technologies' upcoming initial public offering has generated significant interest among institutional investors, with the company's ₹850 crore anchor book allocation attracting participation from major foreign and domestic institutions. The e-commerce enablement platform, backed by Flipkart and TPG, is set to launch its IPO on January 20, closing on January 22, with shares priced in the ₹118-124 range.

Strong Foreign Institutional Interest

The anchor book has secured subscriptions from notable foreign institutional investors, demonstrating international confidence in the company's prospects. Key foreign participants include:

• Norges Bank - Norway's sovereign wealth fund
• HSBC - Global banking giant

All foreign institutional investors have committed to the upper end of the pricing band, reflecting strong demand for the offering.

Domestic Institutional Participation Dominates

Domestic institutional investors have shown particularly strong interest, securing the majority of the anchor book allocation. The domestic participation spans across insurance companies and mutual funds:

IPO Structure and Pricing

Shadowfax's public offering comprises both fresh capital raising and secondary share sales by existing investors:

Existing Investor Exit

Several prominent investors will be partially exiting through the offer-for-sale component. The selling shareholders include:

• Walmart's Flipkart Internet
• Eight Roads Investments Mauritius
• TPG's NewQuest Asia Fund
• Nokia Growth Partners
• International Finance Corporation
• Mirae Asset
• Qualcomm
• Snapdeal co-founders Kunal Bahl and Rohit Kumar Bansal

Notably, Kunal Bahl and Rohit Bansal, who co-founded e-commerce platform Snapdeal and established Titan Capital, are positioned to realize substantial gains from their early investment in Shadowfax, with returns exceeding 158 times their initial investment.

Market Positioning

The strong anchor book subscription, particularly the heavy participation from domestic institutional investors at the upper price band, indicates robust market confidence in Shadowfax's business model and growth prospects. The company operates as an e-commerce enablement platform, serving the logistics and fulfillment needs of the rapidly expanding Indian e-commerce sector.

The successful anchor book allocation sets a positive tone for the public portion of the offering, which opens to retail and other investors on January 20.

Source: https://www.moneycontrol.com/news/business/ipo/shadowfax-ipo-attracts-norges-bank-hsbc-ipru-life-nippon-india-mf-as-anchor-investors-13779643.html