The much-anticipated initial public offering of Shadowfax Technologies will open for public subscription on Tuesday, January 20. This significant event marks a major milestone for the logistics company as it enters the public markets.
IPO Details and Timeline
Shadowfax Technologies' book build issue will remain open until Thursday, January 22. The company has set the price band at ₹118 to ₹124 per equity share. Each share carries a face value of ₹10.
The total issue size stands at ₹1,907.27 crore. This substantial amount combines both a fresh issue of shares and an offer for sale component.
Grey Market Sentiment
Current grey market activity shows tepid interest in the upcoming issue. On Friday morning, the grey market premium for Shadowfax Technologies shares was ₹15. This indicates the stock could potentially list at a 12% premium over the issue price.
Ten Key Points from the Red Herring Prospectus
1. IPO Structure
The issue combines two components. The fresh issue involves 8.06 crore shares to raise ₹1,000 crore. Meanwhile, the offer for sale comprises 7.32 crore shares valued at ₹907.3 crore.
2. Selling Shareholders
Eight investors are participating in the offer for sale. Among them, Flipkart Internet Private Limited plans to sell shares worth ₹400 crore. Eight Roads Investments Mauritius II Limited will sell shares valued at ₹197 crore.
3. Issue Managers
ICICI Securities Limited, Morgan Stanley India Company Private Limited, and JM Financial Limited serve as the book-running lead managers. KFin Technologies Limited acts as the registrar for this public offering.
4. Use of Proceeds
The company intends to utilize net proceeds from the fresh issue for several purposes. These include funding capital expenditure for network infrastructure, lease payments for new logistics centers, branding and marketing costs, and potential inorganic acquisitions. The company will also allocate funds for general corporate purposes.
It is important to note that the company will not receive any proceeds from the offer for sale. Those funds will go directly to the selling shareholders.
5. Business Overview
Shadowfax Technologies operates as a technology-led third-party logistics company. The company serves a diverse range of enterprise clients across multiple sectors. These include horizontal and non-horizontal e-commerce platforms, quick commerce services, food marketplaces, and on-demand mobility companies.
According to the red herring prospectus, the company claims market leadership in several areas. "We are a market leader in third-party logistics, quick commerce solutions, and same-day delivery based on order volume for FY25 and the six-month period ended September 30, 2025," states the document.
The company has demonstrated impressive growth. "We are the fastest growing third-party logistics company of scale in India as of March 31, 2025. Our e-commerce shipment market share expanded from approximately 8% in FY22 to approximately 23% in the six-month period ended September 30, 2025," the prospectus reveals.
6. Financial Performance
Shadowfax Technologies generated revenue from operations of ₹2,485.13 crore in FY25. The company achieved an adjusted EBITDA margin of 1.96% during that period.
For the six-month period ended September 30, 2025, revenue from operations reached ₹1,805.64 crore. The adjusted EBITDA margin improved to 2.86% during this timeframe.
The company earned a profit of ₹6.43 crore in FY25. For the six-month period ended September 30, 2025, profit increased to ₹21 crore.
7. Market Outlook
The red herring prospectus highlights strong growth prospects for India's online retail market. Online shoppers in India are projected to increase at an 8-10% compound annual growth rate from FY25. This growth trajectory could reach 36.5-43 crore shoppers by FY30.
Several factors are driving this expansion. Expanding digital adoption, demographic developments, urbanization trends, nuclearization of households, increasing female workforce participation, and the digital native young demographic are all contributing to the growth of online retail and convenience-led consumption.
8. Company Promoters
Abhishek Bansal and Vaibhav Khandelwal serve as the promoters of Shadowfax Technologies.
Abhishek Bansal, aged 35, holds the positions of Chairman, Managing Director and Chief Executive Officer. Vaibhav Khandelwal, aged 33, serves as a whole-time director of the company.
9. Listed Industry Peers
Blue Dart Express Limited and Delhivery Limited represent the two major listed peers of Shadowfax Technologies in the logistics sector.
10. Key Risk Factors
The company faces concentration risk with its client base. According to the red herring prospectus, the largest client contributed significant portions of revenue across multiple periods:
- 59.52% in FY23
- 59.23% in FY24
- 48% in FY25
- 51.23% for six months ended September 30, 2024
- 48.91% for six months ended September 30, 2025
The company acknowledges this risk explicitly. "The loss of any such key commercial relationships could adversely affect our business," states the document.
Investors should carefully consider all aspects of this public offering before making investment decisions. Market conditions can change rapidly, and individual circumstances vary significantly. Consulting with certified financial experts remains essential for informed investment choices.
