Shadowfax, a leading Indian logistics company, is gearing up for its initial public offering (IPO) next week.
IPO plan and pricing
The firm will raise about Rs 1,900 crore through the IPO. It aims for a post‑IPO valuation of roughly Rs 7,400 crore, a bit lower than earlier estimates to attract long‑term investors.
The issue is split into two parts: fresh shares worth Rs 1,000 crore and an offer‑for‑sale (OFS) of Rs 900 crore by existing shareholders such as Flipkart, Eight Roads, Nokia Growth Partners, IFC, Mirae Asset, Qualcomm and Snapdeal founders.
How the money will be used
Proceeds from the fresh issue will be used to expand the company’s network, pay lease costs for new first‑mile, last‑mile and sort centres, boost branding and marketing, pursue undisclosed acquisitions and cover general corporate needs.
Company background
Shadowfax provides express parcel delivery, reverse pickups, on‑demand hyper‑local and critical logistics services for e‑commerce, quick‑commerce, food marketplaces and on‑demand mobility firms. It operates in more than 14,700 Indian pincodes.
Recent performance
- Revenue for the first half of FY 2026 was about Rs 1,800 crore, a 68% jump year‑on‑year.
- Total revenue for FY 2025 was Rs 2,485 crore.
- The e‑commerce express parcel segment accounts for around 70% of sales, with quick‑commerce logistics contributing another 20%.
- Market share in the express parcel space grew to about 21% in Q1 FY 2026, up from roughly 8% in FY 2022.
What it means for investors
The more conservative pricing could make the shares attractive to institutional investors looking for stable growth in India’s logistics sector. Existing shareholders are also reducing their stakes, which may signal confidence in the company’s future prospects.
Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.