Shadowfax IPO Opens Jan 20: Price Band Set for ₹1,907 Cr Issue

Introduction to Shadowfax Technologies IPO

Bengaluru-based logistics solutions provider Shadowfax Technologies is set to launch its Initial Public Offering (IPO) on January 20, 2026. The company aims to raise ₹1,907.27 crores through this main-board issue, which is a combination of a fresh issue of shares and an offer for sale (OFS) by existing shareholders. The IPO subscription window will close on January 22, 2026, with the company targeting a listing on both the BSE and NSE on January 28, 2026.

IPO Structure and Key Dates

The public offering comprises a fresh issue of 8.06 crore shares, aggregating to ₹1,000 crores, and an offer for sale of 7.32 crore shares, amounting to ₹907.27 crores. The price band for the issue has been fixed at ₹118 to ₹124 per equity share. The pre-IPO market capitalization of the company stands at ₹7,168.85 crores.

Here is a summary of the key details for the IPO:

Investment and Lot Size Details

Investors can bid for a minimum of 120 shares and in multiples thereof. For retail investors, the minimum investment is ₹14,880 at the upper end of the price band. The maximum investment for a retail investor is 13 lots (1,560 shares), amounting to ₹1,93,440. For Small Non-Institutional Investors (sNII), the minimum investment is 14 lots (1,680 shares) for ₹2,08,320, while for Big Non-Institutional Investors (bNII), it is 68 lots (8,160 shares) for ₹10,11,840.

Offer Allocation and Shareholding

The issue has a specific allocation for different investor categories. Not less than 75% of the net offer is reserved for Qualified Institutional Bidders (QIBs), not more than 15% for Non-Institutional Investors (NIIs), and a maximum of 10% is earmarked for retail investors. Prior to the issue, the promoter holding in the company stood at 19.13%. The post-issue shareholding will be diluted accordingly.

About Shadowfax Technologies

Incorporated in 2016, Shadowfax Technologies has established itself as a significant technology-led logistics provider in India. The company offers a wide range of services, including e-commerce express parcel delivery, hyperlocal and quick commerce delivery, and personal courier services through its Flash app. As of September 30, 2025, its extensive logistics network covered 14,758 pin codes across India, supported by a workforce of 4,472 permanent employees and 17,182 contract workers.

Financial Performance Analysis

Shadowfax has demonstrated strong revenue growth and a significant turnaround in profitability. The company reported a Profit After Tax (PAT) of ₹21.04 crores for the six months ended September 30, 2025, a substantial improvement from the loss of ₹142.64 crores in the fiscal year ended March 31, 2023. Total income has also seen a steady rise over the past few years.

Here's a snapshot of the company's financial health:

Objectives of the Issue

The net proceeds from the fresh issue of ₹1,000 crores will be utilized for specific corporate purposes. The company has outlined the following objectives:

• ₹423.43 crores for funding capital expenditure related to network infrastructure.
• ₹138.64 crores for funding lease payments for new first-mile, last-mile, and sort centers.
• ₹88.57 crores for branding, marketing, and communication costs.
• The remaining amount will be used for unidentified inorganic acquisitions and general corporate purposes.

Key Stakeholders and Management

The IPO's Offer for Sale portion will see several existing investors offloading their shares. These include prominent names like Flipkart Internet, Eight Roads Investments, International Finance Corporation, Qualcomm Asia Pacific, and Mirae Asset. The issue is being managed by ICICI Securities Ltd., JM Financial, and Morgan Stanley India Company, with Kfin Technologies Ltd. serving as the registrar.

Market Position and Peer Comparison

Shadowfax operates in a competitive logistics sector alongside established players like Blue Dart Express and Delhivery. The company has carved a niche with its technology-first approach and extensive last-mile delivery network. Its focus on e-commerce, quick commerce, and hyperlocal segments positions it to capitalize on the rapid growth of digital commerce in India. The IPO will provide further capital to strengthen its market position and expand its operational footprint.

How to Apply

Investors can apply for the Shadowfax Technologies IPO through online brokerage platforms like Zerodha, Upstox, and others using UPI or ASBA payment methods. The application process involves logging into the respective platform's console, filling out the IPO application form, and authorizing the payment mandate. The allotment is expected to be finalized on January 23, 2026.