Shadowfax Technologies IPO Day 1 Highlights: Issue booked 47% — Check GMP, review and other details

Shadowfax Technologies IPO was subscribed 47% on the first day of the bidding process today. Retail quota sailed through with 1.11 times bids. The QIB segment was booked 38% and NII portion 22%.

Among the selling shareholders of the public issue, Flipkart Internet is selling 3,22,58,065 company shares, which would generate ₹4,00,00,00,060 or ₹400 crore. Shadowfax Technologies' IPO size is ₹1,907 crore, of which ₹1,000 crore is aimed through fresh capital, and the remaining ₹907 crore is reserved for the OFS.

Some clients choose cash on delivery (~35% of total orders as of 1HFY26), making it their preferred payment method. The company acts as a limited agent for clients, holding the cash until it is transferred to them. In the past, the company encountered a few incidents in which delivery partners were robbed of the cash they carried during deliveries. Additionally, there have been instances of short deposits of cash on delivery order value to the Company after successful deliveries. While the total pecuniary value involved in this matter is just ₹3.2 cr, handling of cash presents an operational risk for the company.

— SBI Securities

The company relies on a crowdsourced network of delivery partners with whom it has no exclusive arrangements. Any potential strikes or changes to the supply of delivery partners may disrupt business operations.

— SBI Securities

The company’s largest client contributed ~49% and ~48% of revenue for 1HFY26 and FY26, respectively. The loss of any such key commercial relationships could adversely affect the business.

— SBI Securities

By 3:42 PM on the first day of bidding the public issue had been subscribed 0.43 times, the retail portion had been booked 1.04 times, whereas the NII segment had been filled 0.17 times. The QIB portion had been filled 0.34 times.

When comparing the issue to its closest peers, the IPO appears to be valued slightly above its peers. We maintain a NEUTRAL view on the IPO and intend to observe its performance post-listing.

— SBI Securities

The company operates an efficient and scalable asset-light business model, having an asset turnover of over 4x. The company does not own any delivery vehicles while touchpoints and last-mile facilities are managed through a leasing model. Considering the low per capita shipment (3-5 in India) compared to 60-70 in the USA and 75-85 in China, the growth prospects appear promising.

At the upper price band of ₹124, the IPO is valued at an EV/Sales and EV/EBITDA multiple of 2.4x and 106.5x, respectively. The company has exhibited strong revenue growth of 32.5% CAGR over FY23-25 and has been EBITDA-positive since FY24.

— SBI Securities

Objectives of the issue are as follows:

1] Network expansion capex for infrastructure and logistics facilities.

2] Lease payments for first-mile, last-mile, and sorting centres.

3] Branding, marketing & strategic growth, including acquisitions and

general corporate purposes.

By 1:51 PM on the first day of bidding the public issue had been subscribed 0.39 times, the retail portion had been booked 0.87 times, whereas the NII segment had been filled 0.14 times.

A massive chunk of their revenue comes from just two sources: Flipkart (which is also an investor) and Meesho. Suitable only for high-risk, long-term investors; conservative investors should wait post-listing for better price discovery.

— Swastika Investmart

Shadowfax benefits from strong growth in India’s last-mile logistics and e-commerce delivery space. Revenue momentum is improving, but profitability remains low and margin visibility is still evolving.

Shadowfax benefits from strong growth in India’s last-mile logistics and e-commerce delivery space. Revenue momentum is improving, but profitability remains low and margin visibility is still evolving.

We recommend growthfocused investors to subscribe to the issue with a multi-year investment horizon, as Shadowfax's market leadership, technology moat, and favourable industry tailwinds position the company to capture significant share of India's ~ ₹21-23 trillion addressable logistics market opportunity.

— SMIFS Limited

The company's comprehensive service portfolio, spanning forward parcel delivery, reverse pickups, hand-in-hand exchanges, prime delivery, and hyperlocal fulfilment; creates high switching costs and expanding wallet share opportunities with marquee clients including Flipkart, Meesho, Zepto, and Swiggy. Sustained execution on network expansion (targeting 2,160+ new delivery centers by FY27), margin accretion through operational leverage, and capacity monetization in high-margin verticals like BFSI and cross-border logistics could translate into multifold value creation over the medium to long term.

The company's diversified revenue mix across Express (69% of revenue), Hyperlocal (21%), and Other Logistics Services (10%) mitigates concentration risk while enabling meaningful operating leverage; EBITDA margins have improved from -8.02% in FY23 to 3.56% in H1FY26 despite sustained network expansion, signalling strong structural unit economics. Further strengthening the investment case is Shadowfax's technology-led, asset-light business model utilizing India's largest gig-based delivery partner fleet (205,864 active partners in H1FY26) and proprietary demand-supply allocation engines, which deliver cost advantages and competitive moats against traditional 3PL competitors while maintaining capital efficiency (3.96x capital turnover—highest among 3PL peers).

By 12:03 AM on the first day of bidding the public issue had been subscribed 0.14 times, the retail portion had been booked 0.63 times, whereas the NII segment had been filled 0.09 times.

The company's diversified revenue mix across Express (69% of revenue), Hyperlocal (21%), and Other Logistics Services (10%) mitigates concentration risk while enabling meaningful operating leverage; EBITDA margins have improved from -8.02% in FY23 to 3.56% in H1FY26 despite sustained network expansion, signalling strong structural unit economics. Further strengthening the investment case is Shadowfax's technology-led, asset-light business model utilizing India's largest gig-based delivery partner fleet (205,864 active partners in H1FY26) and proprietary demand-supply allocation engines, which deliver cost advantages and competitive moats against traditional 3PL competitors while maintaining capital efficiency (3.96x capital turnover—highest among 3PL peers).

Shadowfax operates as the fastest-growing 3PL provider of scale, expanding market share from ~8% in FY22 to ~23% by H1FY26, with market-leading positions in reverse pickup logistics, same-day delivery, and quick commerce solutions; segments that command premium pricing and sticky customer relationships.

Shadowfax is strategically positioned as a mission-critical infrastructure provider within India's rapidly evolving digital commerce and logistics ecosystem, capturing structural growth across e-commerce, quick commerce, and hyperlocal delivery segments. The Indian logistics market, currently valued at $247-270 billion in FY25, is projected to expand at a healthy 6-8% CAGR through FY30, while online B2C logistics (e-commerce and hyperlocal combined) is expected to grow significantly faster at 20-27% CAGR, driven by India's substantial untapped potential relative to global benchmarks (3-4 shipments per capita vs. 60-85 in China and USA).

Shadowfax is a technology-led, third-party logistics (3PL) provider serving India's digital commerce ecosystem. Founded in 2015, the Bengaluru-based company operates across express delivery, quick commerce, and hyperlocal services with a network covering 14,758 pin codes and 4,299 touchpoints. Leveraging India's largest gig-based delivery partner fleet (205,864 active partners), proprietary demand-supply allocation engines, and AIpowered logistics infrastructure, Shadowfax facilitates seamless last-mile fulfilment for marquee clients including Flipkart, Meesho, Zepto, and Swiggy.

By 11:00 AM on the first day of bidding the public issue had been subscribed 0.10 times, the retail portion had been booked 0.44 times, whereas the NII segment had been filled 0.06 times.

The most likely date for Shadowfax Technologies IPO listing is 28 January 2026.

ICICI Securities, Morgan Stanley India, and JM Financial have been appointed as Lead Managers for the bookbuild issue.

The most likely Shadowfax Technologies IPO allotment date is 23 January 2026.

The company aims to raise ₹1,907 crore from the Shadowfax Technologies IPO, of which ₹1,000 crore will be raised through the issuance of fresh shares. The remaining ₹907 crore is reserved for the OFS route.

The public issue is a mix of fresh capital and Offer for Sale (OFS). Hence, the mainboard issue can be termed as a ‘Fresh Capital-cum OFS.’

The initial public offering (IPO) of Shadowfax Technologies Ltd has opened today and will remain open until 22 January 2026.

The logistics solutions company has declared the Shadowfax Technologies IPO price band at ₹118 to ₹124 per equity share.

According to market observers, shares of the company are available at a premium of ₹6 in the grey market today.

Shadowfax Technologies IPO GMP today is ₹6, which means the grey market is expecting that Shadowfax Technologies IPO listing price would be around ₹130 ( ₹124 + ₹6).