Mumbai: Shadowfax Technologies Ltd, a Bengaluru-based logistics provider, is going public today to raise ₹1,907.3 crore as it seeks to invest in its logistics infrastructure to take on the competition. The IPO, will remain open till January 22, with shares at a price band of ₹118-124 each. The Flipkart-backed company had filed its DHRP for ₹2,000 crore in November, but has watered it down slightly.
Out of the total, ₹1,000 crore is a fresh issue while ₹907.3 crore is an OFS by current investors, including Flipkart Internet, International Finance Corporation (IFC), Eight Roads Investments Mauritius, Qualcomm Asia Pacific, NewQuest Asia Fund, Mirae Asset and a few others.
On January 19, Shadowfax raised ₹ 856.02 crores from 39 anchor investors, including ICICI Prudential AMC, Morgan Stanley, Société Générale, TIMF Holdings, among others.
As per Investorgain, the current GMP of this issue is ₹6, about 4.84% higher than the current IPO price band.
Why this IPO is a lifeline for Shadowfax
Shadowfax’s business is quite similar to q-commerce brands like Swiggy and Zepto, as it requires high capital investments in its technology stack, infrastructure, and manpower to execute its deliveries, though margins remain razor-thin. Add to that the highly seasonal nature of shipment demand, and revenues and profits may not always meet expectations.
In 2025, Shadowfax was amongst the top 10 e-commerce logistics players in the country, valued at almost $383 billion with a CAGR of 9.07%. To stand out, the company has to constantly innovate to offer a solution that meets the expectations of the D2C clients, just as Delhivery did, becoming the leader in the segment.
Though the demand for D2C shipments will remain, though not constant, Shadowfax has to offer a solution that meets expectations.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
