India’s fast-growing logistics startup Shadowfax is gearing up for its stock market debut, with plans to raise Rs 1,900 crore through its initial public offering (IPO). As per a PTI report, the company is expected to open the issue next week. From valuation changes to how the funds will be used, here are the key details investors should know before the issue opens.
Shadowfax IPO: A Rs 1,900 crore IPO with a revised valuation
According to sources quoted by PTI, Shadowfax is planning for a post-listing valuation of around Rs 7,400 crore. This is lower than earlier estimates of about Rs 8,500 crore.
Furthermore, the PTI report added that the company is expected to announce its price band later this week.
A look at the key details about the Shadowfax IPO available at the moment –
1. Shadowfax IPO: Mix of fresh issue and offer for sale
The proposed IPO will consist of two parts. Shadowfax will raise Rs 1,000 crore through a fresh issue of shares. The remaining Rs 900 crore will come through an offer for sale, where existing shareholders will sell part of their stake.
Since this is partly an OFS, not all the IPO money will go into the company’s operations.
2. Shadowfax IPO: Existing investors set to trim stakes
Several early and large investors are expected to participate in the offer for sale. These include Flipkart Internet, Eight Roads Investments, NewQuest Asia Fund, Nokia Growth Partners, International Finance Corporation, Mirae Asset and Qualcomm Asia Pacific.
Snapdeal founders Kunal Bahl and Rohit Bansal are also likely to offload a portion of their holdings. They were angel investors and the investment in the form was through their personal VC firm. Furthermore, it is important to understand that these shareholders are selling only part of their stake, not exiting fully.
3. Shadowfax IPO: Where the fresh money will be used
Now coming to the fund utilisation, Shadowfax plans to use the proceeds from the fresh issue mainly to expand its logistics network.
As per the company’s updated draft red herring prospectus (DRHP), funds will be used to strengthen infrastructure, set up new first-mile and last-mile centres, and support lease payments for sorting hubs. Some portion will also go towards branding, marketing, possible acquisitions and general corporate needs.
4. Shadowfax IPO: Revenue growth and business mix
Looking at the financial performance of the company, Shadowfax in the first half of FY26 reported a revenue of around Rs 1,800 crore. This is a 68% year-on-year increase.
In FY25, total revenue stood at Rs 2,485 crore.
5. Shadowfax IPO: Market position
Shadowfax has steadily increased its share in the express parcel delivery segment. The market share of the company surged to about 21% in Q1 FY26, compared with around 8% in FY22.
6. Shadowfax IPO: Regulatory approvals
On the regulatory front, the company had filed its draft IPO papers with Sebi through the confidential pre-filing route in June last year and received approval in October. It later submitted an updated DRHP, a step required before filing the final offer document.
7. Shadowfax IPO: Business overview
Founded in 2015, Shadowfax operates in the logistics space with a focus on e-commerce and time-sensitive deliveries. The company provides express parcel services, reverse logistics, hyperlocal deliveries and critical logistics solutions.