Shadowfax Technologies IPO Opens Today

Shadowfax Technologies, a leading logistics solutions provider, has opened its Initial Public Offering (IPO) for subscription starting January 20. The company aims to raise nearly ₹1,900 crore through the issue. However, early indicators from the grey market suggest limited listing gains, pointing to cautious investor sentiment ahead of the IPO.

Shadowfax Technologies IPO Opens for Subscription

The IPO of Shadowfax Technologies officially opened for bidding on January 20. The company is targeting a fundraise of approximately ₹1,907 crore. Despite strong interest in the logistics and last-mile delivery segment, the IPO is witnessing muted enthusiasm in the grey market so far.

The estimated listing gain, based on grey market trends, is currently around 5%.

What Does GMP Indicate?

According to grey market tracking platform Investorgain, Shadowfax Technologies shares were trading at a grey market premium (GMP) of ₹6 on Tuesday morning.

• IPO Upper Price: ₹124 per share

• GMP: ₹6

• Implied Premium: ~4.84%

Market experts caution that GMP is not an official indicator and is purely speculative in nature. Actual listing performance may differ significantly based on market conditions and demand.

Key IPO Details

Shadowfax Technologies’ IPO is a book-building issue with a total size of ₹1,907.27 crore, consisting of:

• Fresh Issue: ₹1,000 crore

• Offer for Sale (OFS): ₹907.27 crore

Price Band

• ₹118 to ₹124 per share

Lot Size and Investment Requirement

• Retail Investors:

  • Lot size: 120 shares

  • Investment at upper band: ₹14,880

• Small NIIs (sNII):

  • Minimum: 14 lots

  • Investment: ~₹2.08 lakh

• Big NIIs (bNII):

  • Minimum: 68 lots

  • Investment: ~₹10.11 lakh

IPO Timeline

• IPO Opens: January 20

• IPO Closes: January 22

• Allotment Finalisation: January 23

• Refunds & Demat Credit: January 27

• Listing Date: January 28 (Expected)

• Stock Exchange: BSE and NSE

IPO Reservation Breakdown

• Qualified Institutional Buyers (QIBs): 75%

• Retail Investors: 10%

• Non-Institutional Investors (NIIs): 15%

• Book Running Lead Manager: ICICI Securities

• Registrar: KFin Technologies

Should You Subscribe to Shadowfax Technologies IPO?

Brokerage View – Swastik Investmart

Swastik Investmart has given a Neutral rating to the IPO.

According to the brokerage:

• Shadowfax benefits from strong growth in last-mile logistics and e-commerce delivery in India

• However, the company’s profitability remains weak

• Margin visibility is limited

A significant portion of the company’s revenue comes from Flipkart (also an investor) and Meesho, making revenue concentration a concern. Swastik advises that this IPO is better suited for high-risk, long-term investors, while conservative investors may prefer to wait for post-listing price discovery.

Capital Market Rating and Risk Assessment

Online financial analysis platform Capital Market has rated the IPO 42/100.

Positives Highlighted

• Shadowfax is among a select group of 3PL companies in India

• Provides end-to-end e-commerce delivery services

• Strong presence in:

  • Quick commerce

  • Food delivery

  • Hyperlocal logistics

• Offers value-added services such as:

  • Reverse pickups

  • Exchange deliveries

  • Same-day delivery

Key Risks Identified

Capital Market also flagged several risks:

• Highly concentrated revenue profile

• In H1 FY26, nearly 50% of revenue came from the largest client

• Top five clients contributed ~75% of total revenue

• Dependence on non-exclusive delivery partners

• Uneven expansion of logistics network infrastructure

These factors could impact scalability and long-term growth.

About Shadowfax Technologies

Shadowfax Technologies is a leading logistics and delivery solutions provider in India. The company caters to:

• E-commerce platforms

• Quick commerce players

• Food delivery services

• Hyperlocal businesses

It offers comprehensive last-mile delivery solutions along with reverse logistics and time-critical delivery services.