Shadowfax IPO Likely Next Week: ₹1,900-Crore Issue Targets ₹7,400-Crore Valuation

Price Band Announcement Expected This Week​

Logistics services provider Shadowfax is preparing to launch its initial public offering next week, with the issue size pegged at ₹1,900 crore and a targeted post-listing valuation of around ₹7,400 crore. The company is expected to announce the price band for its maiden public issue later this week.

The proposed valuation is lower than earlier market expectations of nearly ₹8,500 crore, reflecting a more conservative pricing strategy aimed at drawing long-term institutional participation.

Issue Structure and Selling Shareholders​

The IPO is expected to comprise a fresh issue of equity shares aggregating ₹1,000 crore, along with an offer for sale of shares worth ₹900 crore by existing shareholders.

As part of the offer for sale, several early and growth-stage investors are expected to pare their holdings, including Flipkart, Eight Roads Ventures, NewQuest Asia Fund IV, Nokia Growth Partners, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific, and Snapdeal founders Kunal Bahl and Rohit Kumar Bansal.

Planned Use of Fresh Issue Proceeds​

Funds raised through the fresh issue are proposed to be utilised for expanding network infrastructure capacity, meeting lease-related payments for new first-mile, last-mile and sorting centres, and strengthening branding, marketing and communication initiatives. The company also plans to allocate a portion of the proceeds towards potential inorganic acquisitions and general corporate purposes.

Business Profile and Network Reach​

Shadowfax is backed by marquee investors including Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures and Nokia Growth Funds. The company operates as a logistics service provider focused on e-commerce express parcel deliveries and value-added logistics solutions.

As of September 2025, Shadowfax’s service network covered 14,758 pincodes across India. Its client base spans horizontal and non-horizontal e-commerce platforms, quick commerce operators, food marketplaces, and on-demand mobility companies.

Financial Performance and Segment Mix​

For the first half of FY26, Shadowfax reported revenue of around ₹1,800 crore, registering a 68 percent year-on-year growth. The company had posted total revenue of ₹2,485 crore in FY25.

The e-commerce express parcel segment remains the core revenue driver, contributing nearly 70 percent of overall business. Hyperlocal and quick commerce logistics together account for roughly 20 percent of revenues.

Market Share Gains in Express Parcel Segment​

Shadowfax has significantly expanded its presence in the express parcel market. Its market share rose to approximately 21 percent in the first quarter of FY26, compared with about 8 percent in FY22, underscoring rapid scale-up and increased penetration in India’s fast-growing e-commerce logistics space.

Confidential Filing Route and IPO Progress​

The company had filed its draft IPO papers in late June through a confidential pre-filing route and subsequently received approval to proceed. Following this step, Shadowfax has moved closer to market launch by preparing updated offer documents ahead of the public issue.

The confidential filing route has increasingly been adopted by Indian companies seeking flexibility in IPO planning while refining valuation and issue structure closer to launch.