Shadowfax IPO opens for bidding. Check GMP, brokerages review, subscription and other details

The IPO of Shadowfax Technologies has opened for subscription on Tuesday, as the fast-growing last-mile logistics player looks to tap the capital markets amid sustained interest in India’s e-commerce and quick-commerce ecosystem. The Rs 1,907-crore IPO is a book-built issue, priced in the range of Rs 118 to Rs 124 per share.

At the upper end of the price band, the issue values Shadowfax at a pre-IPO market capitalisation of about Rs 7,169 crore. The offer comprises a fresh issue of shares worth Rs 1,000 crore and an offer for sale of Rs 907 crore by existing shareholders. The shares are slated to list on the BSE and NSE on January 28.

Shadowfax IPO GMP

In the grey market, Shadowfax is currently commanding a premium of about 5% over the issue price, indicating muted expectations of listing gains despite the company’s strong growth profile.

What the company does
Founded in 2016, Shadowfax operates a technology-led, asset-light third-party logistics platform focused on last-mile delivery. Its services span e-commerce and D2C parcel delivery, hyperlocal and quick-commerce fulfilment, and same-day or next-day shipments. The company does not own delivery vehicles, instead relying on leased infrastructure and a large gig-based delivery partner network.

As of September 2025, Shadowfax had a presence across 14,758 pin codes, supported by 4,299 touchpoints and more than 3.5 million square feet of operational space, including 53 sort centres. Its platform serviced over 205,000 average quarterly unique delivery partners, while clients include Meesho, Flipkart, Myntra, Swiggy, Bigbasket, Zepto, Blinkit and Zomato.

Financially, the company has reported sharp revenue growth in recent years, with a revenue CAGR of over 32% between FY23 and FY25. It turned EBITDA-positive in FY24, although profitability remains thin. For the half year ended September 2025, Shadowfax reported a profit after tax of Rs 21 crore on total income of Rs 1,820 crore, with an EBITDA margin of under 3%.

The valuation, however, is the key point of debate. Based on recent earnings, the IPO implies a price-to-earnings multiple well above 1,000 times, significantly higher than listed peers such as Blue Dart Express and Delhivery.

Shadowfax IPO GMP Day 1 Live Updates: Agile and customisable logistics services

Should you subscribe?
Brokerages remain cautious on the IPO, flagging rich valuations even as they acknowledge the structural growth opportunity. SBI Securities said that at the upper price band of Rs 124, the IPO is valued at about 2.4 times EV/sales and 106.5 times EV/EBITDA.

"The company has exhibited strong revenue growth and operates an efficient and scalable asset-light business model. However, compared with its closest peers, the issue appears slightly premium. We maintain a neutral view and intend to observe its performance post listing," the brokerage said.

Swastika Investmart argued that while Shadowfax benefits from strong growth in last-mile logistics, profitability remains low and margin visibility is still evolving. It also flagged customer concentration risks, as a large share of revenue comes from Flipkart and Meesho.

The IPO proceeds from the fresh issue will be used largely for expanding network infrastructure, funding lease payments for first-mile and last-mile centres, and spending on branding and marketing, with the remainder earmarked for general corporate purposes.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)